Kuwait to bail out banks
Kuwaiti authorities are said to have reached an agreement on a bail out scheme for banks in the country
Click here to add Ahmad Lari as an alert
Disable alert for Ahmad Lari,
Click here to add Mustafa Al-Shamali as an alert
Disable alert for Mustafa Al-Shamali,
Click here to add Safa Al-Hashem as an alert
Disable alert for Safa Al-Hashem,
Click here to add Yussef al-Zalzalah as an alert
Disable alert for Yussef al-Zalzalah
Kuwaiti authorities are said to have reached a provisional agreement under which its Government will buy out billions of dollars of bank loans and reschedule them interest free.
Kuwait’s Finance Minister Mustafa al-Shamali recently told reporters that an agreement had been reached and the deal would be finalised next week.
Committee Chairman, Yussef al-Zalzalah, reportedly said the deal requires the Government to buy all bank loans taken out by Kuwaiti citizens between 1 January 2002 and 30 March 2008, according to news agency AFP.
The news agency reported that MPs claim local banks violated lending rules during the period by charging higher interest and the Central Bank failed to apply the law on them.
The Government will waive all interest on the loans and reschedule repayment in easy installments “that must not exceed 40 per cent of borrowers' monthly income,” Zalzalah is quoted as saying.
The process is estimated to cost around $3.2 billion, reported AFP, citing Committee Member Ahmad Lari. Committee Secretary Safa al-Hashem is quoted as saying around 66,000 debtors will benefit.
MPs have also proposed that Kuwaitis who does not benefit from the debt relief scheme should be given a grant of $3500.
- Nip, tuck: Dubai's grand plans for being a major player in medical tourism
- Zain, UNHCR, Facebook to bring free internet access to urban refugees in Jordan
- Yemen Central Bank headquarters to relocate from Sanaa to Aden
- IMF report details the crippling economic effects of conflict in MENA
- Start Up Lebanon entrepreneurs head to Silicon Valley Roadshow
- Kuwait collects $7 billion from private debt bail-out
- Bailing out: Ahmad Fahmi released in huge Cairo bank fraud case
- Industrial Bank of Kuwait granted $1.5 billion loans between 1974-2000
- Turkey bans brokerage firm, moves to sell bailed out banks
- Turkey Bails Out Private Bank, Bans Activities of Another