Tagged: International Monetary Fund

IMF says Bahrain’s growing debt may be unsustainable by 2018

IMF says Bahrain’s growing debt may be unsustainable by 2018

According to the International Monetary Fund, Bahrain must urgently cut spending or risk unsustainable public debt as its fiscal deficit widens and oil prices decline. The smallest Gulf crude producer needs gradual fiscal consolidation equal to 7.7% of economic output over the next six budget years to contain its government debt at 40% of gross domestic product. IMF also recommended that Bahrain pare its fiscal stimulus to 0.9 percentage points of non-oil GDP from 2.1 percentage points. Bahrain’s outstanding debt including interest is about US$11.8 billion, with more than US$3 billion due this year. Moreover, investment in Bahrain’s private sector remains low, which may translate to non-oil growth of less than 4% in 2013. Bahrain is also vulnerable to oil price fluctuations.

Pak, Afghanistan pushing Islamic banking for growth

Pak, Afghanistan pushing Islamic banking for growth

Islamabad —Pakistan, Afghanistan and Senegal, among the world’s 50 poorest nations, are turning to Islamic banking to spur economic growth by encouraging people to take out loans and open savings accounts. Outstanding domestic bank lending accounte…

Islamic banks fared better during financial crisis

Islamic banks fared better during financial crisis

Since the global financial crisis started to unfold in 2008, there have been several reports suggesting that Islamic banks have been less affected by the crisis because they are not allowed for ethical reasons to invest in the pernicious derivatives su…