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Kuwait Investment Authority, which manages the fund, said withdrawals won’t affect its durability
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Proposed law one of many financial reform measures under consideration
RIYADH: Kuwait’s finance ministry is working on a law that would allow the government to tap the $700-billion Future Generations Fund in times of need.
The Kuwait Investment Authority, which manages the fund said the withdrawal from the fund would be a temporary measure that won’t affect its durability even though the reserve will be affected.
The legislation is one of the financial reform measures under Kuwaiti government’s consideration.
Bloomberg reported that a delay to the proposed law that would allow the government to borrow or withdraw from the fund has left the treasury cash-strapped amid increased spending during the pandemic and delayed reforms.
On Friday, ratings agency S&P Global Ratings cut Kuwait’s rating by one notch, citing the Gulf state’s lack of a funding strategy to finance its deficit.
Hit hard by lower oil prices and the COVID-19 pandemic last year, Kuwait faces liquidity risks. (With inputs from Bloomberg, Arab News)
