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US, Cuba to Restore Ties After 50 Yrs of Hostility

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US, Cuba to Restore Ties After 50 Yrs of Hostility SUBSCRIPTION THURSDAY, DECEMBER 18, 2014 SAFAR 26, 1436 AH www.kuwaittimes.net One domestic EU court The Real Fouz: In Qatar, violence case orders removal Confidence workers reported in of Hamas from the key to paid to be Kuwait4 daily terror13 blacklist success37 sports18 ‘fans’ US, Cuba to restore ties Min 08º Max 21º after 50 yrs of hostility High Tide 09:08 & 20:40 Low Tide Obama, Castro announce historic breakthrough Prisoners freed 03:01 & 14:20 40 PAGES NO: 16376 150 FILS • conspiracy theories What’s the sudden panic? By Badrya Darwish [email protected] he most hilarious thing I read this week, guys, was a report that the government, as a Tresult of the drop in oil prices, might need to borrow from the general reserve fund or take commercial loans to cover the 2015 budget. But I don’t know when they said commercial loans, what this means. Is it to borrow from banks, for instance? And at what interest rate will that be, if it happens? American Alan Gross (center right) arrives from Cuba yesterday at Andrews Air Force Base in Maryland after It doesn’t matter. The ridiculous thing is the five years of detention. (Top right) US President Barack Obama delivers an address to the nation from the borrowing. It’s been only two months or less than Cabinet Room of the White House in Washington yesterday. (Right) Screenshot from Cuban TV shows two months since oil plunged to $65 per barrel, President Raul Castro addressing the country yesterday in Havana. — AFP and our budgets are actually based on a barrel of oil selling at $55. And for the last many years, oil WASHINGTON: The United States and Cuba made a his- has maintained a high price of not less than $100 toric breakthrough in their Cold War stand-off yester- per barrel on average. day, moving to revive diplomatic ties and launch meas- So what’s the sudden panic in the government ures to ease a five-decade US trade embargo. In the about the budget? This panic does not serve wake of a prisoner exchange, President Barack Obama Kuwait’s business confidence, stock market or said the United States was ready to review trade ties business environment. It can negatively affect and to re-open its embassy in communist Cuba that has loans, spending and investments. Talking to my been closed since 1961. Cuba’s President Raul Castro, in friends, none of them now want to build, invest or a simultaneous address in Havana, confirmed that the trade in the market because they feel that we former enemies had “agreed to re-establish diplomatic have black days and they want to save their pen- ties” after more than half a century. nies. Continued on Page 13 What about the interest on our investments around the globe? In 2013, the KIA was estimated to hold roughly $342 billion in assets. Where is all that money? Where is just the interest on those Iraq seeks 1-year assets? Leave alone the Future Generations Fund which no one is allowed to discuss. Are we really delay on Kuwait in a bad situation? What about the last 16 years of multibillion dollar budget surpluses? According to war reparations the Central Bank, Kuwait should have billions of GENEVA: Iraq has requested a one-year deferral of a dinars in surplus funds. Where are they? $4.6 billion reparations payment for destroying On one hand, if the government is serious Kuwait’s oil facilities during its 1990-91 occupation, a about implementing stricter budget spending UN official said yesterday. The request comes as Iraq’s and reforms, I suggest they start with themselves. economy is being battered by both low oil prices and But on the other hand, if the government is war with Islamic State militants. Kuwait and major exploiting this drop in oil prices to cut subsidies, powers on the ruling body of the UN Compensation this is another story. This is not the way to do it by Commission will consider the formal request at a spe- threatening “we are broke and need to borrow” - it cial session in Geneva on Thursday, the official, who doesn’t matter from where. works on the commission, said. Already the government has lifted the subsi- Kuwait was said by the official to be supportive of dies on diesel. If oil prices have fallen so low, why the request. “We have a request for a one-year suspen- shouldn’t diesel prices also fall? I have no idea, I’m sion of the requirement to deposit 5 percent of Iraqi not an economist on oil products. But in my opin- oil revenues into the compensation fund,” the senior ion, lifting subsidies on diesel will make many oth- official told Reuters. “They are looking for a one-year er goods more expensive because all products deferral with the possibility of review at the end of need to be shipped and transported. one year,” she said, adding that the decision could be Why should we have to borrow money - at least taken today. Reuters reported exclusively last week for the short term? Do you guys remember I wrote that Iraq was seeking to postpone payment of the earlier about the KD 9 billion budget surpluses final $4.6 billion instalment as it faces a cash crisis from Jan to Sept 2014? Where is that money? caused by falling oil prices and war with Islamic mili- With all this money, we are panicking - God tants who have taken over the north and west. help other countries. Continued on Page 13 MPW details projects worth KD 7.3 billion Assembly lifts immunity of Fadhl, Dashti By B Izzak in Kuwait and the Middle East. He said that almost half of the project has been com- KUWAIT: The ministry of public works informed the pleted. The cost of the project is KD 242 million and is National Assembly yesterday that the value of projects slated for completion in 2016. He said as much as one under construction, or which have been tendered and those million tonnes of concrete will be used in the project or to be tendered soon is over KD 7.3 billion. Undersecretary of five times more than all concrete used in the Al-Hamra the ministry Ahmad Al-Hassan said the main projects under skyscraper. Other projects include the 190-km Seventh construction include the 36-km Subbiya Causeway which is Ring Road and the 102-km Salmi highway starting from scheduled to be completed by the end of 2018. Hassan said Jahra to the Salmi border post with Saudi Arabia. The that 25 percent of the causeway has been completed and project will be offered in three separate tenders and is there is no delay in work. Another project is the develop- slated for completion in three years. ment of Jamal Abdulnasser Road, one of the main projects Continued on Page 13 THURSDAY, DECEMBER 18, 2014 LOCAL Power, gas price hikes still Special report considered: Oil Minister Tougher choices No pending salary cuts for Kuwait By A Saleh those made since June onwards denying any intention to cut By Dr Jasim Husain Ali challenge. The subsidy scheme means that Kuwait has no deficit. salaries. amounts to lost opportunities in uti- KUWAIT: Oil Minister Ali Al- Speaking at a seminar held Zalzalah stressed that there uwait is considering a review lizing treasury revenues. Omair explained that Kuwait was jointly with MP Yousuf Al- was a great deal of waste in of its too generous subsidy Likewise, the Amir pressed for the country least affected by Zalzalah at the latter’s diwaniya, many fields including subsidized Kprogram, with the Amir diversifying the economy away from falling oil prices, even it goes Omair said that the new budget supplies. “A large portion of recently calling on legislators to find oil, and for good reason. The petro- below $50 per barrel. “We have will not affect development proj- those supplies go to people who ways to stop ‘the squandering of the leum sector is exceptionally vital for decided not to stop our projects,” ects because some other expens- do not deserve them and they country’s resources’ the well-being of the economy, he underlined, pointing out that es could be cut down. Omair are sometimes sold because we Policymakers in Kuwait are evalu- making up 93 per cent of treasury the government is still studying also stressed that talks about lift- are giving subsidized products to ating the value of some of the eco- income, 85 per cent of exports and all options. “Brent crude oil prices ing subsides from oil products, both the needy and the better- nomic choices they are confronted 40 per cent of GDP. Unfortunately, of dropped to $60 per barrel, but electricity and petrol were still off citizens,” he said, noting that with, including possible changes to all the GCC countries, Kuwait is the our budget is still safe from subject to study and that no much of the subsidized diesel the many expensive subsidy most dependent on oil for the func- deficits because we have been decision had been made yet. “We and cooking gas was being sold schemes. The authorities will cer- tioning of its economy. tainly need to come up with ways to Officials are said to be reviewing KUWAIT: Oil Minister Ali Al- selling oil for over $100 a barrel all have to share the responsibili- on the black market and that avi- for the first six months of this ty because if oil prices fall, it ation fuel was given to airlines enhance the standing of the Kuwaiti elements of the subsidy program, Omair pictured during yester- economy in a global perspective, like restricting the provision for day’s parliament session.
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