Supporting Countries to Postpone Scheduled Aid Payment to Bahrain due to Coronavirus
2020-12-08 - 5:14 am
Bahraini Mirror: Cross-cutting sources said that the Gulf countries supporting Bahrain recently announced the postponement of a payment scheduled last September under the financial balance program.
Saudi Arabia, the United Arab Emirates and Kuwait have pledged $10 billion in support to Bahrain in 2018 as part of a program sponsored by the Arab Monetary Fund that ends in 2022 by restoring the balance, which has been lost for years, to Manama's finances.
The planned aid payment in the fourth quarter of this year is $1.76 billion.
The supporting States informed Bahrain that the payments were not in accordance with scheduled dates due to the effects of the Coronavirus pandemic on their finances.
The sources confirmed to "Bahrain Mirror" that Saudi Arabia, UAE and Kuwait confirmed their commitment to the program and that payments will be made later next year.
Last October, the Ministry of Finance and National Economy commissioned the US Company Lazar to review the financial balance program for 425,000 dinars fees.
Bahrain's financial plan was affected by the postponement of Gulf payments, along with the financial burdens left by the virus and the fall in oil prices.
Bahrain has been forced to resort to international markets to borrow twice this year. It also issued high-interest domestic instruments to encourage on investment.