Wednesday 3 March 2021

#Kuwait wealth fund in talks with KPC on $20 billion-plus dividends - sources | Reuters

Kuwait wealth fund in talks with KPC on $20 billion-plus dividends - sources | Reuters

Kuwait’s sovereign wealth fund is negotiating with state-owned Kuwait Petroleum Corporation (KPC) a new payment schedule for more than $20 billion in accrued dividends, two sources said, as the Gulf state seeks ways to counter a liquidity crunch.

KPC has owed for years about 7 billion Kuwaiti dinars ($23.14 billion) in dividends to the General Reserve Fund (GRF), one of Kuwait’s sovereign funds.

GRF and KPC agreed in recent years a repayment schedule, but GRF now wants to review it and accelerate it as part of government efforts to cover the deficit, said the sources.

“KPC is suffering due to low oil prices and the government has a liquidity problem. KPC wants as long as possible to return the money, and the government wants the largest amount possible,” said one of the sources.

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