Kuwaiti Minister of Finance, Khalifa Musaed Hamada, affirmed that “Kuwait’s financial position is strong and solid, because it is fully supported by the Future Generations Reserve Fund, which is witnessing continuous growth,” warning of the near depletion of liquidity in the state treasury, stressing that enhancing liquidity is a priority in the next phase.
Hamada, commenting on the decision of the credit rating agency "Fitch" to reduce the outlook for Kuwait to "negative" from "stable", explained that the state's public finances suffers from structural imbalances related to annual revenues and expenditures that have led to the near depletion of liquidity in the state treasury represented by the General Reserve Fund.
He added that "one of the most important priorities of the executive authority in the coming stage is to enhance the liquidity of the treasury, and we stress, as we stressed in the past, the need for concerted efforts of all parties to work as one team to achieve the sustainability of public finances."
The agency, "Fitch" for credit ratings, lowered the "outlook" for the classification of sovereign debt of Kuwait to negative from stable, expected! Risk in the near-term liquidity associated with the State Treasury Fund.
"Fitch" assigned Kuwait a long-term rating at AA, indicating that the change in the outlook indicates near-term liquidity risks associated with the imminent depletion of liquid assets in the General Reserve Fund in the absence of parliamentary authorization for the government to borrow.
Source (Al-Arabiya.net Website, Edited)
