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  • 21-10-21

    UAE, Saudi Arabia, Kuwait support Bahrain's plans to balance its budget

    (MENAFN)Saudi Arabia, Kuwait and the United Arab Emirates showed their support for Bahrain's strategies to equilibrium its budget, a predictable reaction to support their neighbor in the debt capital markets regardless of postponements to fix its severely indebted finances.

    The three Gulf allies increased a USD10 billion aid package to Bahrain in 2018 to avoid a credit crisis.

    Attributable to the pandemic in 2020, Bahrain suspended the target year for a balanced budget to 2024, and proclaimed plans to increase a value-added tax to raise state coffers.

    The fiscal balance program - a set of reforms planned at balancing the budget - was connected to the guaranteed USD10 billion. 

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