One of World’s Richest Nations Taps Wealth Fund as Cash Dries Up

This is the best tl;dr I could make, original reduced by 72%. (I'm a bot)

Kuwait's government has transferred the last of its performing assets to the country's sovereign wealth fund in exchange for cash to plug its budget deficit, after a political dispute over borrowing left one of the world's richest nations short of cash and prompted Fitch to cut its outlook to negative.

Fitch affirmed Kuwait's AA rating but said "The imminent depletion of liquid assets" and "Absence of parliamentary authorization for the government to borrow" was creating uncertainty.

Desperate to generate liquidity, the government began last year swapping its best assets for cash with the $600 billion Future Generations Fund, which is meant to safeguard the Gulf Arab nation's wealth for a time after oil.

Responding to Fitch Finance Minister Khalifa Hamada said Kuwait's financial position remained "Robust" due to the cushion provided by the FGF. The government's priority going forward would be to replenish the treasury, he said, without specifying how.

With 80% of government income based on oil, Kuwait needs crude at $90 to balance the new budget.

Kuwait would be looking at "Either the imposition of high taxes," said Talal Fahad Alghanim, former CEO of Boursa Kuwait.

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