Page 10 - Kuwait-Three-Years-Business-Outlook-2019-2020-2021
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Kuwait Economy KHOA
Government Debt: Kuwait's government
debt currently stands at an estimated
KWD6bn.
This is composed of a roughly equal
share of domestic debt and international
debt in the form of a Eurobond issued in
2017 worth USD8bn (roughly KWD2.4bn).
While the team notes that legal restrictions
have prevented Kuwait from borrowing
beyond the current debt ceiling of
KWD10bn, we expect the
ceiling to be lifted over the coming quarters
as part of the government's aim to develop
a domestic yield curve.
As such, we forecast government debt to
modestly rise over the medium-term before
declining from 2023 on, though this will
pose very limited risks to overall stability
given the state's abundant fiscal buffers and
low financing costs.
As per Fitch Solutions (ex BMI)
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