Oil Prices To Determine General Reserve’s Liquidity Rate

The volume of liquidity currently available in the general reserve is close to about KD 1 billion. The stability of the liquidity rate during the coming months will depend on the oil prices, reports Al-Rai daily quoting reliable sources.

Sources told the daily that the salaries and wages for December will be disbursed to government employees and those of similar status on the usual dates.

However, the continued dependence on covering the budget deficit by withdrawing from these funds will exacerbate the general reserve crisis shortly, and increase the risk of liquidity depletion.

The sources said that one of the difficult scenarios outlined in the Ministry of Finance is that, if the oil prices fall in the coming period to levels of the crisis period- ranged between $ 27 and $40, Kuwait will be facing high risks for not being able to cover deficits and fulfill the due obligations.

 

SOURCE : TIMES KUWAIT

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