IMF Says Bahrain Needs Comprehensive Package of Economic Reforms - Bloomberg

IMF Says Bahrain Needs Comprehensive Package of Economic Reforms - Bloomberg:

Bahrain needs a comprehensive package of reforms to reduce its fiscal deficits over the medium term, the IMF said, as the island kingdom seeks to secure crucial support from rich neighbors to avoid a currency devaluation.

"Despite planned fiscal consolidation measures, fiscal and external deficits are projected to continue over the medium term, due to the large and growing interest bill," IMF’s Executive Board said in a report on Sunday. "Public debt is expected to increase further over the medium term and reserves are projected to remain low."

Bahrain, one of the most vulnerable Gulf Arab economies to lower oil prices, confirmed last month that it was in talks with Saudi Arabia, the United Arab Emirates and Kuwait for support that would help reduce ballooning debt and shore up foreign-exchange reserves. The country hired investment bank Lazard Ltd. to advise on how to repair its strained public finances, people with knowledge of the matter said earlier this month.