Bahrain on Wednesday (June 27th) said its Gulf allies are to unveil a new support package to shore up its finances, AFP reported.
The kingdom's central bank intervened Tuesday to defend the value of the dinar, promising to maintain its peg to the dollar against pressure on spot markets, London-based Capital Economics said.
Investor confidence has been hit by the kingdom's difficulties in finding new creditors to finance its large budget deficit.
Bahrain, along with Saudi Arabia, the UAE and Kuwait "will announce a programme to support the stability of the financial situation in Bahrain", Finance Minister Sheikh Ahmed bin Mohammed Al-Khalifa told the Bahrain News Agency.
Sheikh Ahmed gave no timeframe for the new cash injection.
