Kuwait Resilient to Plunge in Oil Prices Engaged in This Attack,” Obama Said
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SUBSCRIPTION SUNDAY, DECEMBER 21, 2014 SAFAR 29, 1436 AH www.kuwaittimes.net Anti-Corruption Jovial Obama Hero’s welcome City reel Authority to paints picture for S Africa’s Chelsea in, start work by of resurgent first Miss World Falcao ends new year3 America9 in40 40 years United20 wait Kuwait resilient to Min 11º Max 24º High Tide plunge in oil prices 12:14 & 22:46 Low Tide Fitch maintains state’s ‘AA’ rating 05:40 & 17:16 40 PAGES NO: 16379 150 FILS KUWAIT: Fitch Ratings has affirmed Kuwait’s long-term foreign and local currency issuer default ratings (IDR) at Law to leash ‘AA’, according to a report released by the international agency. The outlooks are stable; Kuwait’s ceiling has been wild animal affirmed at ‘AA+’ and the short-term foreign currency IDR at ‘F1+’. Key rating drivers, Kuwait’s IDRs, reflect the follow- ing key rating drivers: Kuwait is resilient to the decline in enthusiasts oil prices that has occurred so far in 2014. Very high per capita oil exports have consistently gen- By A Saleh erated large fiscal and current account surpluses and sur- pluses in excess of 20 percent of GDP are forecast each KUWAIT: MPs Kamel Al-Awadhi, Adnan Abdulsamad, year to 2016, despite the prospect of lower oil prices. Fitch Ahmed Al-Qudhaibi, Ahmed Al-Azmi and Rakan Al- estimates that the FY14 fiscal breakeven oil price is $48 Nisf have proposed a bill incriminating the posses- per barrel and the 2014 external breakeven is $40 per bar- sion, sale, purchase or advertisement of wild animals. rel. These are among the lowest of all rated sovereigns. An According to the bill, the above mentioned violations exceptionally strong sovereign balance sheet is the key will be punishable if committed by individuals and support for the ratings. violators will be fined by KD 20,000 and/or six-month Fitch forecasts that sovereign net foreign assets will rise imprisonment. The bill exempts individuals or bodies to 269 percent of GDP at the end of 2014, the strongest of who have a license from PAAAFR, such as circuses and all rated sovereigns, and that the net creditor position will licensed zoos. rise to 54 percent of GDP. Both are expected to improve Commenting on the bill, Awadhi stressed that it over the forecast period. Current account surpluses are became a necessity after the phenomenal rise in substantial. Kuwait posted the second largest current keeping wild animals as pets that was recently account surplus of any Fitch-rated sovereign in 2013, at topped by a lion attacking a Filipina maid, causing her 39.7 percent of GDP, the third consecutive year that the fatal injuries. Abdulsamad stressed that such acts surplus exceeded 30 percent of GDP. pose a fatal threat to people everywhere because VENICE, California: A billboard for the film “The Interview” is displayed. — AFP Fitch expects the surplus to decline in line with the some of these animals are kept in residential areas. He agency’s forecast of lower oil prices, but still forecasts a added that they can more dangerous than weapons. surplus of 25 percent of GDP in 2016. The surplus has not Meanwhile, MP Khalil Al-Saleh congratulated N Korea denies Sony hack, been below 20 percent of GDP since 2003. Fiscal surpluses Kuwait Airways for achieving what he described as are consistently in double digits. The general government the first phase of its development by receiving its first surplus was the largest of all Fitch-rated sovereigns at an new plane Friday. He also noted that this step was wants joint probe with US estimated 34.9 percent of GDP in FY14 (ending March). long awaited and that was needed to boost trust in The fiscal breakeven oil price is low, at $48 per barrel in the national carrier, “provided this is done in accor- FY14, but so is capital spending, which is around 10 per- dance with laws and regulations”. He noted that the Obama warns Pyongyang of response cent of total spending, one-third of regional peers. KAC chairwoman recently announced the company’s SEOUL/WASHINGTON: North Korea said US accusa- probe and continued to accuse Pyongyang, the offi- Despite rising spending and falling oil revenues, the intention to sign a new contract with Boeing to buy tions that it was involved in a cyberattack on Sony cial KCNA news agency reported yesterday. surplus is forecast to only fall to 25 percent of GDP in 10 new planes, and questioned the move. “Is the Civil Pictures were “groundless slander” and that it wanted On Friday, President Barack Obama blamed North 2016. There are tentative signs that the non-oil economy Aviation Council authorized to give KAC the green a joint investigation into the incident with the United Korea for the devastating cyberattack, which led to is gaining momentum, reflected in the awarding of sever- light to sign such a contract without conducting the States. An unnamed spokesman of the North’s for- the Hollywood studio cancelling “The Interview”, a al projects in recent months and private sector credit needed technical and financial studies,” he asked. eign ministry said there would be “grave conse- comedy on the fictional assassination of North growth at around a five-year high. Fitch expects non-oil Continued on Page 13 quences” if Washington refused to agree to the joint Continued on Page 13 growth of around 4 percent over 2014-16. Continued On Page 13 Iran’s support for Syria tested by oil price drop AMMAN: Syrian businessmen and trade offi- doors for them to invest in Syria.” Tehran this week to boost Iranian support for cials say they are worried the economic lifeline Oil production in Syria, which is under US Syria, in particular ensuring Iranian petroleum provided by Iran is under strain from plunging and European sanctions, has dropped sharply products reach the Syrian market, Syrian state oil prices, despite public messages of support since the start of the conflict and as insur- news agency SANA reported. “Iran’s economic from Syria’s strongest regional ally. Syrian gents have taken over energy installations. In support for Syria will continue incessantly,” President Bashar Al-Assad has relied on oil- July last year, Iran granted Syria a $3.6 billion Iranian Vice President Eshagh Jahangiri said producing Iran to help him fight insurgents in credit facility to buy oil products, according to on Tuesday after meeting Halqi, according to a nearly four-year-old civil war and also prop officials and bankers at the time. Another $1 Iran’s state news agency IRNA. up a currency under pressure. “If it had not billion went for non-oil products. But with the But there were no detailed announce- been for Iranian support we could not have global oil price down 50 percent since June, ments of joint ventures or oil deals as fol- survived the crisis,” a senior Syrian trade official Syria - where rebels have seized up to a third lowed previous such visits in the past. A sen- said from Damascus, requesting anonymity. “It of the country - has sought reassurances ior Iranian official told Reuters that support was Iranian support that has been the most Tehran will maintain the status quo. The pub- for Assad would never flag despite the fall in important. In return, we are promising them lic message has been an overwhelming “yes”. oil prices. more and more, and opening more and more Syrian Prime Minister Wael Al-Halqi visited Continued on Page 13 Police kill 4 ‘terrorists’ US issues in Saudi Shiite village RIYADH: Saudi police killed four “terrorists” wounded. Assiri died Sunday when officers worldwide yesterday in a Shiite village in an operation came under fire from farms near Awamiya. This undated photo obtained yesterday shows ISS Commander Butch Wilmore to arrest the people who shot dead a sol- The village, just west of Dammam city travel alert as he holds up the ratchet after removing it from the print tray. — AFP dier there last weekend, the spokesman for on the Gulf coast, has witnessed clashes the interior ministry said. During a between security forces of the Sunni-domi- WASHINGTON: The United States issued a world- shootout in Awamiya, “four terrorists, nated kingdom and protesters from the wide travel alert Friday, warning Americans to be vig- ISS crew gets new including the primary suspect in the shoot- minority Shiite community. In February, a ilant during the holiday period, especially in the wake ing of soldier Abdelaziz bin Ahmed Al- firefight in Awamiya left two policemen of a deadly siege in Australia. A gunman in Sydney Assiri, were killed,” the spokesman was and two suspects dead. Other shootings ratchet over email quoted by the official SPA news agency as have occurred there in subsequent took 17 people hostage at a cafe on Monday. The saying in a statement. One policeman was months. — AFP siege ended 16 hours later in a barrage of gunfire that left two hostages and the Iranian-born gunman WASHINGTON: There may be no corner four hours, the company said in a state- dead. hardware store at the International ment. “The ratchet was designed as one “The lone wolf attack in Sydney, Australia... result- Space Station, but that doesn’t mean the print with moveable parts without any astronauts can’t get what they need. In a support material,” the company said. “The ing in the deaths of two hostages, is a reminder that first, the space station crew was able to parts and mechanisms of the ratchet had US citizens should be extra cautious, maintain a very craft a new tool in space, using their spe- to be enclosed to prevent pieces from high level of vigilance and take appropriate steps to cially designed Zero-G 3D printer and a floating in the microgravity environment.” enhance their personal security,” the State design emailed from the ground.