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Kuwait Seeks Approval to Use Wealth Fund to Finance Deficit

  • Future Generations Fund not tapped since aftermath of Gulf War
  • Oil-price turmoil and pandemic have battered Kuwait’s finances
Buildings illuminated in the colours of the national flag ahead of Kuwait’s national day,  on Feb. 20.

Buildings illuminated in the colours of the national flag ahead of Kuwait’s national day,  on Feb. 20.

Photographer: Yasser al-Zayyat/AFP/Getty Images 

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Kuwait’s government submitted a draft law to parliament seeking permission to withdraw as much as 5 billion dinars ($16.5 billion) a year from the country’s sovereign wealth fund to help finance a spiraling deficit.

If approved by lawmakers, it would be the first time since the aftermath of the Gulf War in 1990 that Kuwait had extracted funds from the $600 billion Future Generations Fund. Previous withdrawals were treated as loans and had to be repaid.