Gulf countries finalising $10 billion aid package for Bahrain
Bahrain is set to receive a $10 billion aid package from its Gulf neighbours to help with the country's finances, according to regional media.
Saudi Arabia, the UAE and Kuwait will provide the financial support for Bahrain, which has been struggling with economic instability after low oil prices and political unrest, Kuwaiti newspaper Al-Rai reported on Thursday.
Bahrain has been running a financial deficit due to the low oil prices, and has been hit by troubles following a clampdown on protests from the country's Shia majority.
Bahraini ministers will soon return to the island state following a visit to Jordan, where they will sign the agreement with their Gulf neighbours.
"A Gulf decision at the highest levels was taken to start the execution steps for a programme to support the financial stability of Bahrain," a source told the Kuwaiti newspaper.
Saudi Arabia and the UAE are two of the Bahrain regime's closest allies, and helped quell protests in 2011 following military intervention.
Kuwait has also helped Bahrain and Oman cope with financial difficulties in the past.
The three countries are reportedly in Jordan to provide a $1 billion cash injection for the government, which has also suffered a credit crisis that led to large-scale protests this summer.
The Gulf states announced in summer that they were considering a bail-out package for Bahrain following financial difficulties, on condition the country pushes through tough economic reforms.
This will likely include the introduction of VAT and pension reforms, before elections for the country's national assembly next month.
The amount offered to Bahrain will cover two years of deficits, according to Reuters.