Middle East News: Kuwait Bill to Boost Borrowing Meets Resistance - Bloomberg:
A draft law allowing Kuwait’s government to tap local and international debt markets is unlikely to be supported by lawmakers unless it makes a convincing case for how any borrowed money will be spent, according to a key member of parliament.
The Finance Ministry is trying to hammer out a compromise with lawmakers to help ease the passage of the highly contentious draft bill, which would allow it to issue debt of as much as 20 billion dinars ($65 billion). If passed by the house, deadlocked for years over the government’s efforts to borrow, the legislation would help Kuwait reduce the budget deficit and provide a much-needed liquidity boost.
But Safa Al-Hashem, the head of parliament’s finance and economic panel, on Monday questioned if the government has a plan for managing the new public debt or a road map for spending the amount it requested.
Meetings are scheduled for next week to discuss the bill, she said. Should it win committee approval, the legislation would be referred to the house for debate and a vote.
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