Al Bilad newspaper Raising the ceiling on public debt instruments to 16 billion dinars – 2024-02-17 07:23:02

In the next session, the House of Representatives will discuss the report of the Financial and Economic Committee regarding Decree Law No. (13) of 2023 AD amending some provisions of Decree Law No. (15) of 1977 AD regarding the issuance of development bonds.
The Decree-Law includes the following texts:
Article (1): The Minister of Finance and National Economy is authorized, by agreement with the Central Bank of Bahrain, to issue in the Kingdom of Bahrain, or outside it, bonds on the public treasury, bonds called (development bonds), financing instruments compatible with Islamic Sharia, and other credit facilities within a limit of six. Ten thousand million dinars.
In Article (2): The treasury bills, development bonds, and financing instruments referred to in the previous article shall be bearer, or nominal and negotiable, and shall be consumed within the period specified in the issuance statement.
The Minister of Finance and National Economy, in agreement with the Central Bank of Bahrain, may issue these permits, bonds, and financing instruments, whether in Bahraini dinars, or in convertible currencies, and he may also re-issue them again, in place of the consumer, so that their current value does not increase. At any time, 16 thousand million dinars.
The Ministry of Finance and National Economy recommended in its views the approval of the decree-law, and also clarified that the government’s ability to provide the financing needs for the implementation of the state’s general budget for the fiscal years 2023 and 2024 will depend on increasing the ceiling of development bonds, and according to the agreements that were made between the executive and legislative authorities at that time, which will entail the next:
First, the importance of reviewing and amending the previous development bond ceiling, urgently, in preparation for providing the financial needs to finance the state’s general budget deficits and expenditures, other expenses, and to pay debt installments due for the remaining period of the 2023 and 2024 fiscal years.
Secondly, the need to finance the deficit, which is estimated in the draft law approving the general budget for the fiscal years 2023 and 2024, at a total amount of 681 million dinars.
Third, allowing sufficient space to issue development bonds, financing instruments, and credit facilities within the public debt ceiling, allowing this ministry to optimally exploit financing opportunities in light of the current situation of the local and global financial markets.

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