Kuwait Plans To Double Debt Ceiling To $66bn

Kuwait’s legislation covering its permitted debt ceiling expires this year and the government is taking the opportunity to double the ceiling to KD20bn ($65.6bn). But this will actually be a more conservative raise than previously expected. The IMF’s Article IV report from November 2016 said Kuwait’s debt committee had a recommended KD25bn ($81.9bn) limit.

Along with boosting the ceiling, Kuwait will increase the maximum maturity of the bond issues to 30 years from the current 10, Deputy Prime Minister and Finance Minister Anas al-Salih said this week. The new legislation will be presented to parliament shortly.

Foreign borrowing is permitted under a ministerial decree from 2009 up to a limit of KD5bn ($16.4bn). A subsequent decree issued in 2015 authorized the Kuwait Investment Authority (KIA) to borrow in international markets. It’s unclear whether this will be increased along with the overall debt ceiling, but it can be raised at a later date. (CONTINUED - 860 WORDS)

DATA INSIDE THIS ARTICLE

table Kuwait: Key Trade Figures (Kd Bn)