Bahrain’s Gulf neighbours to offer new aid to help economy

DUBAI, United Arab Emirates – Bahrain says its Gulf neighbours Kuwait, Saudi Arabia and the United Arab Emirates will offer new aid to strengthen the island nation’s “fiscal stability” amid concerns over its economy.

A statement early Wednesday morning carried by the state-run Bahrain News Agency quoted Finance Minister Sheikh Ahmed bin Mohammed Al Khalifa as saying the three nations are “set to announce a new program designed to strengthen Bahrain’s fiscal stability.”

The statement offered no details, other than expressing Sheikh Ahmed’s “gratitude” to the three nations.

The move seemed aimed at calming markets.

While Bahrain pegs its dinar against the U.S. dollar, it has taken a beating in trading. Meanwhile, the cost of insuring Bahrain’s debt against default for five years has risen to the highest levels since records began in 2008.