Kuwait will increase its borrowing on international markets to plug a budget deficit resulting from low oil prices, AFP reported Tuesday (April 4th).
The move comes after the Gulf state raised $8 billion last month in its first international bond issue.
"We will continue to be present in the international (debt) market but in a prudent, rational way," Finance Minister Anas al-Saleh said at the Kuwait Financial Forum.
"We will use all instruments, including bonds and (Islamic) sukuks. This will go side by side with enforcing reforms," he said.
After registering a healthy surplus for 16 consecutive years, the Gulf state posted its first budget shortfall of $15 billion in the 2015-2016 fiscal year following a slump in oil prices.
Kuwait projected a deficit of $29 billion in the 12 months to March 31st, and is expecting a deficit of some $21.6 billion for the next fiscal year.
