Kuwait considers halting automatic 10% transfer to wealth fund, says govt official - Reuters:
Kuwait is considering making an annual 10% transfer of state revenue to its wealth fund conditional on budget surpluses, a government official told Reuters, as it seeks to bolster its finances amid low oil prices and the coronavirus pandemic.
Despite its vast financial wealth, the oil exporting nation could see its deficit widen to over 11% of gross domestic product (GDP) this year from a 4.8% surplus last year, the International Monetary Fund has estimated.
Kuwait cannot access international debt due to parliament opposition to a debt law proposed by the government.
The Future Generations Fund, which is managed by the Kuwait Investment Authority (KIA), automatically receives 10% of the state’s oil revenue every year. The KIA also manages the General Reserve Fund, which has been depleting at a fast rate to plug the budget deficit.
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