Kuwaiti cabinet proposes new amendments to debt law, MP says

FILE PHOTO: The Kuwait national flag flies at half-mast as the country starts mourning the death of Kuwait's ruling Emir Sheikh Sabah al-Ahmad al-Sabah, in Kuwait City, Kuwait September 29, 2020. REUTERS/Stephanie McGehee

KUWAIT (Reuters) - The Kuwaiti government has proposed new amendments to the country’s public debt law, including capping borrowing to maximum 60% of gross domestic product, the head of a parliamentary finance committee told Reuters.

The government presented the proposed amendments to the parliamentary committee on Monday, Ahmed al-Hamad said. Another proposed change regards the duration of debt: the government would like no maturity limit, he said, while the existing debt law has a maximum limit of 30 years.

Kuwait is facing a liquidity squeeze because of a standoff between government and parliament over the public debt law.

Reporting by Ahmed Hagagy; Editing by Catherine Evans