Bahrain Mirror: Bloomberg, the economic news website, said that measures taken by Bahrain were not enough to stabilize its debt-to-GDP, indicating that the International monetary Fund (IMF) expects that the debt will reach 109%.

The government hasn't "identified a clear medium-term strategy to tackle high deficits and there is no clarity on a timeline towards the development of such a strategy," Fitch said. "The political environment, embedded social expectations and a lack of experience with taxation severely constrains the government from enacting a sharper fiscal adjustment".

According to Bloomberg data "Bahrain has about $14 billion of outstanding dollar bonds, which has helped boost the government's debt-to-GDP to 91 percent last year, IMF estimates show."

The fund sees it rising to 99% this year and 107% in 2019.

Its fiscal deficit this year is forecast at 11.9 % of GDP, and economic growth is set to ease to 1.7% this year, the slowest pace since 1989, according to the IMF.

"Further material support from the GCC would be forthcoming in case of extreme political, financial, or fiscal instability, given Bahrain's small size and strategic importance," Fitch expected.

Greece witnessed a financial crisis with investors apprehensive in 2009 of its inability to pay off public debt which amounted to 129%.

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