Oil and investment asset price declines will affect Kuwaiti solvency: Emir

Kuwait is facing the big and unprecedented challenge of shielding our economy from the external shocks caused by this virus, the Emir said. (File/AFP)

• Kuwait is facing the big and unprecedented challenge of shielding our economy from the external shocks caused by this virus, the Emir said

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 “financial solvency” of the state, Emir Sheikh Sabah Al-Ahmad Al-Sabah said on Saturday.
“Kuwait 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,” the Emir was cited by the state news agency KUNA as saying.
It wasn’t 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’s finance as a result of the economic impact of the health crisis.
Moody’s Investors Service has hinted it might downgrade Kuwait's long-term issuer rating.