Saudi Arabia, Kuwait and the United Arab Emirates have agreed to give Bahrain $10 billion to “support the country’s funding requirements,” Reuters reports, as Bahrain embarks on a fiscal program aimed at eliminating its budget deficit by 2022.
The move by Saudi Arabia, Kuwait and the UAE “makes sense economically” because “any collapse of Bahrain’s currency or a potential credit crunch could undermine confidence throughout the region,” Reuters notes.
Saudi Arabia’s Crown Prince Mohammed bin Salman visited Kuwait last weekend for talks.
According to Reuters, a package of reforms announced by the Bahrain government on Thursday are aimed at delivering 800 million Bahraini dinars ($2.12 billion) in annual savings and eliminate its budget deficit by 2022. Manama had projected a $3.5 billion budget deficit in 2018.
[Click here to read the full report in Reuters]