The Public Authority for Investment is looking at strategic options to exploit them in whole or in part according to approved mechanisms during the coming period to revive the liquidity of the state’s general reserve, most notably the transfer of assets owned by Kuwait in external operating institutions and entities, in addition to some unlisted domestic generating assets to the Future Generations Fund in exchange for “cash” and according to the current market prices.
Al-Rai has learned from informed sources that the options aimed at strengthening the general reserve in accordance with a technical vision set by the Authority also include the exit of some assets and the privatization of existing companies, some of which are being restructured by offering shares to the private sector and citizens in cooperation with the concerned authorities for the foreseeable future.
The sources pointed out the stability of oil prices between 85 and 90 dollars per barrel or its rise in future will qualify the Authority to provide basic financial benefits to government institutions estimated at about 3 billion dinars during the next 6 months, including covering the costs of projects that have already been completed in addition to benefits related to housing care, credit bank capitalization and other requirements.
The sources indicated the regularity of the Kuwait Petroleum Corporation, as is the case now, in transferring a large proportion of oil revenues will increase the strength of this trend, which will undoubtedly result in strengthening the state’s general reserve, while the whole issued will be placed in front of the Minister of Finance for appropriate action.
The sources explained that the formation of surpluses will be spared from the required monthly benefits, which are represented in the government sector salaries and other channels that require the provision of monthly liquidity, noting that this goes in a parallel line with the plans for the payment of benefits and external debts within the framework of payments, which is the closest to it. It is worth mention $3.5 billion debt will be repaid in March.
The sources pointed to the Authority’s interest in organizing several lines at the same time, including expansion and the search for generating opportunities and offering the necessary options to enhance the liquidity and general reserves of the country, in addition to meeting the monthly and periodic local dues, which reflects the work at a regular pace to achieve the desired goals within specific timetables.