MIDEAST DEBT-Kuwait, Oman wealth funds being depleted to finance deficits - Reuters:
Kuwait and Oman will run down their wealth funds to finance fiscal deficits this year, sources and analysts said, as their access to international debt markets is impaired by lack of a legal framework in Kuwait and higher borrowing costs for Oman.
The two states sit at opposite ends of the wealth spectrum in the Gulf. Major oil exporter Kuwait was among the least hit when oil prices sank in 2014-2015. Oman, a small producer, saw its finances crippled.
Oman is expected to issue up to $2 billion in bonds soon, a test of its access to external funding after Moody’s downgraded it to junk earlier this year, the latest global rating agency to do so.
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