Kuwait’s Parliament Blocks Govt From Using International Funds

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Kuwait has recently woken up to the ramifications of the twin economic hardships, one of which is the downfall of oil prices and the other being the Covid-19 pandemic. Moreover, the Kuwaiti parliament blocks any possibility for the government to borrow from international funds. 

Although Kuwait is on the high-income list of countries yet it seems like the country is churning through its last resorts for cash – Where the government is exchanging the country’s assets for cash and that’s only a temporary solution to the crisis. 

As mentioned in media reports, the head of Al-Shall Economic Consultants Jassim Al-Saadoun said “They are just buying time.” 

These assets of which Kuwait is trading in for cash primarily comprise shares and stakes in the Kuwait Finance House, and the telecom giant Zain. 

As the dilemma continues to persist – The country’s economy is being hindered by the pandemic and the decline in oil prices. Even more, lawmakers in Kuwait didn’t give the authorization for the government to commence borrowing. Kuwait could be seeing the eighth year of government budget deficit this time. 

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