Bahrain to Borrow BD300 Million in 2021 to Cover Budget Deficit: Finance Ministry
2021-03-12 - 8:42 p
Bahrain Mirror: The Shura Council's financial and economic affairs committee recommended the approval of a decree that raises public debt ceiling from BD13 to 15 billion.
The committee saw that it is important to urgently increase the debt ceiling, so that the Finance and National Economy Ministry can cover the financing needs as quickly as possible and take advantage of the global financial markets conditions.
For its part, the Ministry of Finance and National Economy has revealed that it is working to complete the operation of the office of public debt management in cooperation with the International Monetary Fund and has established an international borrowing program with the aim of reducing borrowing costs.
The ministry said that Bahrain is expected to borrow BD1.3 billion during 2021 to finance needs resulting from deficit in the general budget.
The ministry said it issued $2 billion worth of international bonds in January, including $500 million for 7 years at an interest rate of 4.25%, $1 billion for 12 years at an interest rate of 5.25%, and $500 million for 30 years at an interest rate of $6.25 million.
The ministry also reported the issuance of local bonds worth BD 200 dinars during the last period of this year.
It announced in a memorandum to the Shura Council that the plan to complete the operation of the office of public debt management, which is carried out in cooperation with the International Monetary Fund, includes training and developing staff capacity, preparing the public debt management strategy, the office's medium-term plan and financing plan, developing the office structure and job descriptions as well as financial systems and special reports, in addition to preparing the office evaluation plan and development initiatives, and working on the application of best international practices in the affairs of public debt management.