Bahrain Mumtalakat Holding Company has allocated part of its profits to pay off debts which reached BD560 million ($1.4 billion) until December last year, it said in a statement.

In reply to MPs, the company said no funds have been incorporated in the state budget ever since its inception as profits and losses are included in its budget, which is part of government assets, said a report in the Gulf Daily News (GDN), our sister publication.

The company’s profits are used in new investments, to set up new companies, restructure some companies and repay loans to reduce debts.

Mumtalakat is also facing cash flow problems, reported our sister paper Akhbar Al Khaleej. - TradeArabia News Service