Bloomberg news network reported that the Kuwaiti government, by issuing a decree, has allowed borrowing from the country’s national wealth fund with assets of more than one trillion dollars to support the state’s financial resources. The decree is an amendment to the 1976 law related to the “Future Generations Fund,” whose management is handled by the Kuwait Investment Authority.
Under this decree, any loan taken from the fund must be repaid if there is a surplus in the government budget, and the repayment must take priority. It is also prohibited to remove or forgive this loan without a new legal authorization.
Bloomberg wrote that these amendments are part of Kuwait’s financial and legal reforms.
Kuwait previously had drawn only once from the Future Generations Fund during Iraq’s attack in 1990.
The news network noted that Kuwait’s economy has faced pressure following the more than six-month war between the United States and Iran and the closure of the Strait of Hormuz, and that the country’s exports have declined.


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