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MP queries credit rating concern – Bylaws lag

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Kuwait’s seafront waiting for crowds eager to cool down during the summer heat.
Kuwait’s seafront waiting for crowds eager to cool down during the summer heat.

KUWAIT CITY, May 15: MP Faisal Al-Duwaisan has forwarded questions to Minister of Finance and acting Oil Minister Anas Al-Saleh on the recent Moody’s rating of Kuwait.

He inquired about the reasons behind the weak business environment in the country and the precautionary measures that the Ministry of Finance intends to take in order to improve the rating.

He explained that Moody’s confirmed Saturday that the Aa2 rating of Kuwait reflects high creditworthiness. He said the agency hinted on obstacles to the implementation of the financial and economic reforms, as well as factors which could lead to lower rating such as the continuous oil price decline, further deterioration of public finances, lower volume of the financial assets of the government, weakness of the business atmosphere or deterioration of regional political environment.

The lawmaker wants to know the obstacles to the implementation of financial and economic reforms, factors which could lead to lower rating other than the oil price decline, causes of expected deterioration of public finances, lower volume of the financial assets of the government, reasons behind the weakness of the business environment and precautionary measures that the Ministry of Finance intends to take.

Meanwhile, Rapporteur of the Parliamentary Priorities Committee MP Ahmed Lari has unveiled their plan to prepare a report about the government authorities which have yet to issue the executive bylaws for laws enacted by the Parliament recently. He said only six out of 11 ministries have responded to the committee’s request to present the executive bylaws for 19 laws. He disclosed the committee observed lack of coordination between the ministries in drafting the executive bylaws, indicating the recently-approved laws are beneficial to the citizens.

He added the committee will announce the names of those responsible for the delayed implementation of projects included in the development plan after finalizing its report on the work program of the government.

In another development, the Economic and Financial Affairs Committee has postponed talks on the proposals to amend the law on Kuwait Fund for Arab Economic Development and establish an investment portfolio to support students who shoulder their own expenses.

Committee Chairman MP Faisal Al-Shaye explained Kuwait Investment Authority and the Ministry of Education requested for the postponement in order to study the two proposals thoroughly, particularly the item on changing the current system for the fund to operate in accordance with the Islamic Sharia.

He revealed the proposals include providing for the needs of students in the form of interest-free loans in order to help them complete their undergraduate, master’s or doctorate degrees.

By Abubakar A. Ibrahim

Arab Times Staff

 

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