The Credit Rating Agency "Fitch" warned that the liquidity at the General Reserve Fund may run out by the end of this year, in case a law is not passed allowing the issuance of new debts. It is concerned that the depletion of the Fund's liquidity will significantly reduce the government's ability to meet its spending obligations, which could lead to major economic turmoil.
Fitch expects, in a recent report, that the government will fill the shortfall in the General Reserve Fund once again to avoid depletion even without any new legislation by the National Assembly, indicating that debt service will continue in any case in a timely manner, and yet there is still a degree of uncertainty.
The agency announced that Kuwait will continue to suffer from a high deficit as a result of the continuing impact of the "Corona" epidemic and the sharp decline in oil prices last year, this will also leave most of the Gulf governments in deficit during 2021, but the countries of the region will witness an improvement in their financial conditions thanks to the recovery of oil prices and the decline in production cuts.
Source (Al-Araby Al-Jadeed Newspaper, Edited)
