Kuwait banks offer KD 132.3m on insured financial funds

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Al-Shimali made the assertion in response to questions presented by the MP Dr. Ali Al-Omair with regard of the extent of the benefits in the domestic economy as a result of the implementation of the financial stability law.

The minister noted that the state insurance of the deficit of the credit facilities allocations and the drop of the value of the financial and real-estate portfolios in the banks constituted a complementary and necessary measure by the state to ensure rights of the depositors, as well as a precaution to protect the banking sector, vis-a-vis the fallouts of the global financial meltdown.

He indicated that the insurance was set for the years 2009, 2010 and 2011, provided that the banks would adhere to the slash of this insurance on annual basis as of the end of 2011, at a rate of eight percent.

Al-Shimali added that the implementation of codes in the first chapter of the law would be in the case where the banks prove unable to bear the burden of the allotments, or the value of the cut in the financial and real-estate investments.

Minister Al-Shimali, in response to a question about the benefits presumably reaped by the investment law, as well as the number of the benefiting companies and the overall volume of the offered funds, said non of the investment companies applied for benefits from the third chapter of the legislation to the Central Bank of Kuwait till August 12.

As to the number of the bourse-listed companies that benefited from the law, he said a fund was granted to a single company, listed in Kuwait Stock Exchange (KSE), noting that it amounted to KD 21.6 million.

 

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