KUWAIT: The decline in oil prices and the value of investment assets since the start of the coronavirus outbreak will have an adverse impact on the 鈥渇inancial solvency鈥� of the state, Emir Sheikh Sabah Al-Ahmad Al-Sabah said on Saturday.
鈥淜uwait is facing the big and unprecedented challenge of shielding our economy from the external shocks caused by this virus, specifically the decline in oil prices and the value of investments and assets, which will have a negative impact on the financial solvency of the state,鈥� the Emir was cited by the state news agency KUNA as saying.
It wasn鈥檛 clear if the comment meant that Kuwait could delay the payment of government dues, or whether it was a general statement about the deterioration of the state鈥檚 finance as a result of the economic impact of the health crisis.
Moody鈥檚 Investors Service has hinted it might downgrade Kuwait's long-term issuer rating.