Kuwait authorizes Investment Authority to borrow abroad, central bank to borrow domestically
KUWAIT CITY: Kuwait's minister of finance has authorized the country's Investment Authority to carry out foreign borrowing operations and the Central Bank of Kuwait to conduct domestic borrowing operations on behalf of the ministry.
In March, Kuwait issued a decree law on public debt that outlined a framework for managing public borrowing, as the country prepares to return to global debt markets for the first time in eight years.
The law allows the government to issue financial instruments with maturities of up to 50 years and sets a ceiling for public debt at 30 billion Kuwaiti dinars ($97.9 billion), or its equivalent, in major convertible foreign currencies, said a statement on the official gazette.
Article 1 of the decision, signed by Finance Minister Noura Al-Fusam, authorizes the Central Bank of Kuwait, on behalf of the Ministry of Finance and 'in coordination and consultation' with it, to carry out borrowing operations in Kuwaiti dinars or major convertible foreign currencies within the state 'in accordance with recognized financial instruments and methods.'
Article 2 authorizes the Kuwait Investment Authority, on behalf of the Ministry of Finance and 'in coordination and consultation' with it, to carry out borrowing operations in major convertible foreign currencies in global markets 'in accordance with recognized financial instruments and methods.'
The last time Kuwait issued bonds was in 2017.
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