By: Ahmad Awad
Kuwait-Mubasher: The Kuwaiti government is studying issuance of sovereign bonds to finance part of the country’s budget deficit, according to sources requested to remain anonymous.
The bonds are worth about KWD 2 billion ($6.656 billion), and are projected to be offered in the first quarter of the fiscal year 2016/2017 which starts in April, the sources added.
Kuwait expects a budget deficit worth KWD 12.2 billion ($40.607 billion) for the fiscal year 2016/2017.
While estimating this budget deficit, international rating agencies have put into account the 10% transferred annually from the state revenues to Kuwait’s future generation fund (FGF). The fund is worth $500 billion (KWD 150.219 billion).
