‘New airways to operate soon’
KUWAIT CITY, June 20: Board Chairman of the Directorate General for Civil Aviation Sheikh Salman Al- Hamoud announced that more than KD 2.5 billion has been allocated for infrastructural upgrade at Kuwait International Airport as a measure aimed at transforming Kuwait into a commercial and financial hub, reports Al-Shahed daily. Al-Hamoud explained that the country is committed to improving the transportation sector by providing all necessary facilities.
These facilities include updating required legislations in the air transport industry, and upgrading facilities at Kuwait International Airport. He revealed that work is ongoing to ensure quick execution and completion of construction works at the support terminal, indicating the new terminal has the capacity to serve 4.5 million passengers within a year. He said he is hoping for the inauguration of the new terminal by next year.
Meanwhile, Board Chairman of Al-Wataniya Airways Ali Al-Fawzan, in a press statement, declared the company’s ability to obtain the air operation space which will provide new job opportunities for Kuwaitis. He affirmed that one of the main objectives of the company is to contribute its share in boosting the national economy, revealing that the company will start operation with two airplanes, and it has sufficient number of pilots and crews. In an unrelated development, there are strong indications that the decision taken recently by the Central Bank of Kuwait to increase interest rates for money control tools, shortterm bonds and deposits in dinar by a quarter point will lead to high cost for refunding public debt, reports Al- Rai daily.
According to a source, the good news in this aspect is that revenues accruable to the government from deposits will be positively affected. The government will bear relative increase in servicing sovereign debts to which it will be obliged in future generally. The increase in the cost will not be removed completely from the bonds, so the increase in the cost of maintaining long-term bonds has been ruled out.
The long-term bonds are regularly issued, especially within three-ten years with fixed interest rates. He stressed that it is difficult to specify the total amount of government bonds that will be affected by the increased interest rates. However, unofficial data reveal the value of local public debt bonds is around KD 2.5 billion until now.