Draft bill OK’s withdrawal from generations fund

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KUWAIT CITY, Sept 29: A government committee has recently completed the preparation of a draft law that allows withdrawing from the reserves of future generations by virtue of a necessity. It also approved another draft law that provides the state with Islamic financing tools, enabling it to borrow by issuing local or international bonds, reports Al-Rai daily quoting informed sources.

They explained that, “By putting the final touches on the two projects that were recently prepared, four bylaws – the public debt, sukuk and withdrawals from future generations fund and the Silk City – are on the government’s table, awaiting the return of His Highness the Prime Minister Sheikh Sabah Al-Khaled from the United States to determine the government’s priorities in regard to payment, which is to be issued through decrees of necessity.”

Regarding whether the adoption of the public debt law by a decree of necessity would obviate the government from withdrawing from the future generations fund by a decree of necessity as well, or vice versa, the sources said, “The two laws are necessary because they come within the requirements of sovereign rating agencies that stress the importance of having more than one financing tool for Kuwait to face the financial deficit and not rely solely on withdrawing from the general reserves. The failure to pass the two laws constitutes additional pressure on the country’s sovereign rating, which is expected to be updated on the first of October.”

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