KUWAIT CITY, March 27: A decree into law was issued on Wednesday setting the ceiling of public debt at KD 30 billion and allowing the release of financial instruments with a liability reaching 50 years. Minister of Finance, Minister of State for Economic Affairs and Investments Nora Al-Fassam said in a statement that the law enables the State of Kuwait to deal with local and international markets to boost liquidity management. It is part of the government's efforts to bolster financial stability and push forward economic development, in tandem with the State Kuwait Vision 2035. Moreover, it is a crucial step on the path of financial and economic reforms, aimed at establishing a more diversified and sustainable economy for serving the interest of the State and the citizens, she added. For his part, Faisal Al-Muzaini, Director of Public Debt at the Ministry of Finance, disclosed some objectives of the new decree into law such as making financial instruments available for the State in the local and external markets.

Such a situation makes financing in the Kuwaiti dinar or the main foreign convertible currencies possible, thus creating multiple options for managing public debts and liquidity. The new decree into law allows overhauling of the local finance markets by creating a referential sovereign return that in turn contributes to boosting the attractiveness of the Kuwaiti financial markets, contributes to funding mega development ventures, stimulates the domestic economy, boosts the sovereign credit rating of Kuwait, preserves the sovereign liquidity reserves thus enabling the government to honor its financial liabilities in various economic circumstances. Al-Muzaini has further pointed out that this decree into law is proclaimed amid rapid changes in international financial markets where acquiring funding in a fl exible manner is one of the basic factors for economic stability. Moreover, developing the local debt markets boosts Kuwait’s competitiveness as a regional financial hub.  (KUNA)