DMD History

The oil price decline that took place at the end of 2014 and continued through 2015 and 2016, impacted Kuwait’s central government fiscal balance. As a result and for the first time in its recent history, Kuwait considered financing its central government fiscal deficit through a combination of debt and its reserve fund.

After consultation with the International Monetary Fund, and to support the issuance and management of its borrowing, Kuwait established the Debt Management Department (DMD) in April 2016 as a department within the Ministry of Finance.

The DMD has not only taken responsibility for debt management middle office operations but also defined the financing strategy, oversees risk management, and handles investor relationships. The DMD works closely with the Central Bank of Kuwait (CBK) and the Kuwait Investment Authority (KIA), which are responsible for the front and back office operations of local debt (CBK) and international debt (KIA).

The DMD is supervised by the Debt Management Committee which is chaired by the Undersecretary of the Ministry of Finance, and includes senior members from the KIA and the CBK.

The State of Kuwait executed its inaugural international bond transaction of USD 8 BN in March 2017 to support the financing of the 2016/17 fiscal deficit.