Kuwait emir warns oil price drop will affect financial solvency
Published : Sunday, 10 May, 2020 at 4:40 PM Count : 240
The decline in oil prices and the value of investment assets since the start of the coronavirus outbreak will adversely affect the "financial solvency" of Kuwait, Sheikh Sabah al-Ahmad al-Jaber Al-Sabah has said.
"Kuwait is facing a big and unprecedented challenge to protect our economy from external injuries due to this virus, especially the fall in oil prices and the value of investments and assets, which will have a negative impact on the state's financial well-being," state news agency Kuna quoted Amir as saying on Saturday.
It was not clear how the remarks meant Kuwait could delay the payment of government arrears, or whether there was a general statement about the deterioration of the state's finances as a result of the economic impact of the health crisis.
Moody’s Investors Service Committee is reviewing the AA2 long-term issuer rating for downgrade, citing a significant reduction in government revenue as a result of the fall in oil prices and the uncertainty that it will not be able to access adequate sources of funding as it grows.-Internet