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Ball Starts Rolling in Bid to Slash Subsidies

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Ball Starts Rolling in Bid to Slash Subsidies SUBSCRIPTION MONDAY, FEBRUARY 8, 2016 RABI ALTHANI 29, 1437 AH www.kuwaittimes.net Diabetes Turkey says Bosnian Costa and affects over it won’t leave first-graders Chelsea keep 15% of Syrian refugees reach out to heat on Gulf people4 to die 8 deaf28 schoolmate Van20 Gaal Ball starts rolling in Min 07º Max 23º bid to slash subsidies High Tide 12:42 & 23:29 Budget deficit at 64% Panel reviews Silk City law Low Tide • 06:16 & 17:57 40 PAGES NO: 16780 150 FILS By B Izzak KUWAIT: The National Assembly yesterday held a rare Outrage over N Korea rocket launch meeting with the Supreme Planning Council to review government plans to reform the economy in the face of SEOUL: North Korea said yesterday it had successful- falling prices of oil, which contributes to more than 95 ly put a satellite into orbit, with a rocket launch percent of public revenues. The meeting discussed widely condemned as another defiant step towards measures the government proposes to take to finance developing a missile capable of striking the US main- the budget deficit projected at a record KD 11.5 billion, land. The launch, which violated multiple UN resolu- mainly by lifting subsidies on electricity, water and tions, amounted to the North doubling down petrol. against an international community already strug- Kuwait remains the only country in the Gulf gling to punish Pyongyang for its nuclear test barely Cooperation Council (GCC) not to raise the price of a month ago. The UN Security Council met behind petrol as all other five members - Bahrain, Oman, Qatar, closed-doors in New York to issue unanimous con- Saudi Arabia and United Arab Emirates - have taken demnation of the rocket launch, but a new sanctions such measures. The meeting was attended by members resolution under negotiation for weeks has yet to be of the economic development committee of the plan- put to a vote. South Korean President Park Geun-Hye ning council, the assembly speaker and 26 MPs, in addi- urged the Security Council to respond quickly with tion to a number of Cabinet ministers. “strong punitive measures”. Minister of Public Works and State Minister for In a special state TV broadcast, a female North Cabinet Affairs Ali Al-Omair said after the meeting that Korean announcer, wearing a traditional Korean han- the issue of subsidies occupied a small part of the meet- bok dress, hailed the “epochal” launch, personally ing, which focused mainly on the wider scope of eco- ordered by leader Kim Jong-Un, as a major success. nomic reforms and measures to cut government spend- There was no immediate external confirmation that ing. The minister said that all sides are in agreement for the final stage of the satellite-bearing rocket had the need to reform the Kuwaiti economy and tackle successfully achieved orbit, although the US imbalances in it, represented in its total dependence on Strategic Command said it had tracked “the missile oil as the main source of income. Omair said the government will brief MPs today of its launch into space”. North Korean leader Kim Jong-Un looks at the rocket launch of earth Continued on Page 13 detailed plans to raise the prices of electricity, water and observation satellite Kwangmyong 4 yesterday.— AFP petrol, ahead of a crucial Assembly session tomorrow. Continued on Page 13 EQUATE in talks to refinance $6bn loan DUBAI: Kuwait’s EQUATE Petrochemical Co is in talks bigger plan to optimize ownership in its Kuwait oper- with banks to refinance a $6 billion bridge loan that it ations. EQUATE originally raised a $6 billion bridge secured last year and was partly used to fund the loan in December to buy MEGlobal from Dow and acquisition of petrochemical company MEGlobal, PIC, part of state-run Kuwait Petroleum, for $3.2 bil- sources with knowledge of the matter said yesterday. lion, and to refinance some of EQUATE’s existing debt. The venture between Dow Chemical and The loan is due to mature in Dec 2016 although it has Petrochemical Industries Co (PIC) of Kuwait is seeking an option to be extended for six months. EQUATE is funds split into portions of three years and five years, taking indications from local and international banks the sources said on condition of anonymity as the for bullet as well as amortizing loans, the Gulf-based information is not public. One source, a Gulf-based banker and a second source said. In a bullet loan, the banker, added the first tranche would be structured principal is repaid at the end of the term, while in an as a revolving credit facility and the second as a term amortizing structure, the borrower repays parts of the loan. EQUATE did not immediately respond to a loan throughout the duration. request for comment. The current bridge loan was arranged by banks Kuwait’s finances have been hit by a slump in oil including JP Morgan, Citigroup, HSBC, Kuwait Finance prices. This has squeezed banking system liquidity, House and National Bank of Kuwait. Established in forcing government and quasi-sovereign entities to 1995, EQUATE operates an integrated manufacturing scramble for financing ahead of possible US interest facility producing more than 5 million tonnes annual- rate hikes in the coming months. EQUATE’s loan ly of petrochemical products, including polyethylene would facilitate the exit of Dow from some of its ven- and ethylene, that are marketed throughout the tures in Kuwait; the sale of ME Global is part of Dow’s Middle East, Asia, Africa and Europe. — Reuters MANCHESTER, New Hampshire: Republican presidential candidates New Jersey Governor Chris Christie (sec- ond right) and Donald Trump joke as Sen Marco Rubio (left) stands by during a commercial break in the Republican presidential debate at St Anselm College on Saturday. — AFP Rubio wilts, Trump strong MANCHESTER: Surging Republican hopeful Marco Chris Christie, Jeb Bush and John Kasich, meanwhile, Rubio wilted under sustained attack in the latest US need to wrest some of the momentum away from Rubio presidential debate, denting his stature going into if they are to keep their presidential dreams alive as the tomorrow’s New Hampshire primary dominated by fron- voting schedule shifts south and west. trunner Donald Trump. The telegenic, 44-year-old Florida The most sustained attack was waged by New Jersey senator - who polls suggest has the best chance of win- governor Christie, a no-nonsense former federal prose- ning the White House for the Republicans - was savaged cutor who has campaigned hard in New Hampshire and by his rivals late Saturday for his lack of experience, denigrated Rubio for being controlled by his team. floundering on a debate stage where he often shines. “Marco, the thing is this. When you’re president of the A strong showing in New Hampshire would confirm United States... the memorized 30-second speech where Rubio as the establishment candidate-of-choice for the you talk about how great America is at the end of it nomination after his strong third-place finish in Iowa, doesn’t solve one problem,” Christie said. behind Trump and evangelical US senator Ted Cruz. Continued on Page 13 MONDAY, FEBRUARY 8, 2016 LOCAL Kuwait’s Envoy praises Australia’s peaceful role CANBERRA: Kuwait’s Ambassador to in nine Arab countries, confirms the coun- Australia Najeeb Al-Bader expressed his try’s keenness on strengthening its rela- appreciation yesterday for the prominent tions with the Middle East region. He also role of Australia in boosting the interna- pointed out to Australia’s active participa- tional peace and security, especially tion in the international coalition forces through its contribution to liberate Kuwait led by the United States to fight the so- following the 1990 Iraqi invasion. called Islamic state (IS) in Iraq and Syria. This came during a meeting with the He expressed satisfaction on the level Secretary of the Australian Government’s of cooperation between the two countries Department of Veterans, Simon Lewis and in various fields, stressing the unanimity of KUWAIT: His Highness the Deputy Amir and Crown Prince Sheikh Nawaf Al- First Deputy Prime Minister and Minister of First Assistant Secretary Client and views on all issues, especially the crises in Ahmad Al-Jaber Al-Sabah reads a letter from President of Sudan Omar Al-Bashir, Foreign Affairs Sheikh Sabah Al-Khaled Al- Commemorations Division, Major General the region. Meanwhile, Lewis expressed presented by Sudanese Minister of State Taha Othman Ahmed Al-Hussain. Hamad Al-Sabah meets Sudanese Minister of Dave Chalmers in Canberra, Australia, his pride of Australia’s participation in —KUNA photos State Taha Othman Ahmed Al-Hussain. Kuwait’s Embassy in Australia said in a Kuwait’s liberation war, adding that the statement. number of military forces participated Bader said that Australia’s contribution amounted to 1,581, including the naval Crown Prince receives letter in the international peacekeeping forces forces. —KUNA from Sudanese President KUWAIT: His Highness the Deputy Amir and Salem Al-Sabah and Kuwait’s Ambassador to Sheikh Jaber Mubarak Al-Hamad Al-Sabah, First Crown Prince Sheikh Nawaf Al-Ahmad Al-Jaber Al- Sudan Talal Mansour Al-Hajeri. Deputy Prime Minister and Minister of Foreign Sabah received yesterday a letter from President Later, The First Deputy Prime Minister and Affairs Sheikh Sabah Al-Khaled Al-Hamad Al- of Sudan Omar Al-Bashir to His Highness the Amir Minister of Foreign Affairs Sheikh Sabah Al-Khaled Sabah, Deputy Prime Minister and Minister of Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, deal- Al-Hamad Al-Sabah met Minister Hussain at the Interior Sheikh Mohammad Al-Khaled Al-Sabah, ing with bilateral relations and means of boosting Foreign Ministry headquarters.
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