Global forecasts of a “stable” to “negative” change on Kuwait’s sovereign debt rating requires “serious work” to complete financial reforms, Finance Minister Khalifa Hamadeh said on Wednesday, describing the country’s financial state as “solid.” Commenting on the Fitch Ratings credit agency report issued earlier, which gave Kuwait an AA long-term rating, the minister said, “thankfully, Kuwait’s financial position is strong and solid because it is fully supported by the Future Generations’ Reserve Fund, which is witnessing continuous growth thanks to the efforts of those in charge.”
However, he conceded that “the structural imbalances suffered by the state’s public finances, which relate to annual revenues and expenditures, have led to the near depletion of liquidity in the state treasury (General Reserve Fund).”
Amongst the government’s top priorities in the coming stage is to “enhance liquidity in the treasury, and we stress, as we previously emphasized, the need for the concerted efforts of all parties, working as one team to achieve the sustainability of public finances,” he added.
Fitch Ratings’ revision of its long-term outlook for Kuwait is the third by the credit rating agency during the current fiscal year. Its report highlighted “near-term liquidity risk associated with the imminent depletion of liquid assets in the General Reserve Fund (GRF).”
Source: KUNA