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The three Gulf allies provided Bahrain with a $10 billion aid package in 2018 to help it avoid a credit crunch
Saudi Arabia, the United Arab Emirates and Kuwait reiterated their support for Bahrain’s plan to balance the budget. Although the plan to resolve its heavy debt financing has been delayed, this move is expected to help its neighbors develop in the debt capital market.
Three Gulf allies provided 10 billion U.S. dollars Aid package to Bahrain in 2018 To help them avoid credit crunch.
Last month, Bahrain stated that due to last year’s coronavirus crisis, it had postponed its target year for a balanced budget to 2024 and announced plans to increase value-added tax to increase the national treasury.
The fiscal balance plan—a series of reforms designed to balance the budget—related to the promised $10 billion.
The finance ministers of Saudi Arabia, the United Arab Emirates and Kuwait met with the finance ministers of Bahrain on Tuesday to discuss Bahrain’s progress in improving its finances.
The three countries said in a joint statement: “The ministers welcome the efforts of the Bahraini government in implementing the fiscal balance plan and the progress the government has made despite the challenges posed by the Covid-19 pandemic.”
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The statement said: “The ministers affirmed their support for the Kingdom of Bahrain’s efforts to carry out further reforms to strengthen fiscal stability and strengthen sustainable economic growth.”
According to data from the International Monetary Fund, Bahrain’s public debt as a percentage of gross domestic product (GDP) climbed from 102% in 2019 to 133% last year.
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