Public Debt in Bahrain Didn't Decrease despite Gulf Aids
2019-05-04 - 6:20 p
Bahrain Mirror: Data from the Central Bank of Bahrain (CBB) showed the public debt of Bahrain during the first quarter of 2019 remained stable at 11.457 billion BD.
According to CBB data, the value of public debt instruments amounted to 80.7% of GDP in the first quarter of 2018 compared to 75.1% in the first quarter of 2017.
Official numbers show that public debt has remained unchanged since last November, although the state has received the first batch of a $10 billion aid program provided by Saudi Arabia, Kuwait and the UAE to avoid the collapse of the Kingdom's economy.
Officials said earlier that the Gulf aid is aimed at financing the budget deficit and thus reducing the trend towards external borrowing to cover the budget deficit that the government says it wants to eliminate in the coming years through a number of initiatives to rationalize spending and reduce government subsidy.
However, officials did not rule out that Bahrain would have to borrow from the international market during 2019.
Bahrain has increased its borrowing from the overseas market as oil prices decreased in 2014, but oil prices have recently improved and are hovering around the 70$ for a barrel.