BAHRAIN ANNOUNCES UPDATE ON FINANCIAL SUPPORT AGREEMENT

Manama, May 9 (BNA): The Government of Bahrain today announced the latest update to the USD 10 billion financial support agreement signed between the government of Bahrain and the governments of Saudi Arabia, the United Arab Emirates and Kuwait. The Ministry of Finance and National Economy confirmed that the first instalment had been received in full, and that receipt of the second instalment has already started. Under the agreement, $2.292 billion had been received for 2018, and a further $2.276 billion will be received for 2019. The financial support agreement funds a substantial part of the financing needs of Bahrain’s Fiscal Balance Program, a comprehensive plan put in place last year by the Kingdom, which has already led to the deficit falling by over a third. A Ministry of Finance spokesperson also confirmed that as part of the support agreement, the government of Bahrain is set to receive further payments of $1.761 billion in 2020, $1.846 billion in 2021, $1.421 billion in 2022, and $650 million in 2023. The spokesperson added that the government successfully passed its national budget through the elected chamber of parliament. As part of the budget process the government reconfirmed its commitment to subsidy reform and that it would be implemented in coordination with parliament. The Minister of Finance and National Economy, HE Shaikh Salman bin Khalifa Al Khalifa said that "The parliamentary vote on the National Budget is a further positive step in the significant progress we are making. The deficit is down over a third and annual GDP growth remains robust. Bahrain is demonstrating its commitment to delivering strong, sustainable economic growth through swift implementation of the Fiscal Balance Program, and we welcome the ongoing support from our partners in the Kingdom of Saudi Arabia, the United Arab Emirates and the State of Kuwait."