Bor­row­ing law cru­cial for strate­gic plan­ning, deficit fi­nanc­ing: Of­fi­cial

Kuwait Times - - LOCAL -

A bor­row­ing law with an ad­e­quate ceiling in terms of amount and time limit is es­sen­tial for strate­gic plan­ning and fi­nanc­ing the deficit in the state bud­get, a se­nior Fi­nance Min­istry of­fi­cial has said. Ab­du­lazi Al-Mulla, chief of the min­istry’s Pub­lic Debt Man­age­ment Of­fice, added in a press re­lease yes­ter­day that the draft bill on bor­row­ing is part of a se­ries of leg­is­la­tions is­sued in 1987 al­low­ing the gov­ern­ment to bor­row for fi­nanc­ing the deficit in the bud­get.

The bill has been re­cently ap­proved by the cab­i­net, to be later re­ferred to the Na­tional Assem­bly. It com­bines a host of choices to han­dle the sit­u­a­tion, ex­ter­nal and do­mes­tic bor­row­ing, and with­draw­ing from re­serves, Mulla noted. He pointed out that each choice has its own cri­te­ria, and reg­u­la­tions, for pre­serv­ing the a state’s fi­nan­cial rep­u­ta­tion and credit rat­ing. The draft bill sets a ceiling of the amounts of money the gov­ern­ment could bor­row over a cer­tain pe­riod of time. —KUNA

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