Sunday, February 14, 2010

Kuwait banks' liquidity 'very satisfactory' - CBK


Kuwait's central bank governor on Sunday said that liquidity among local banks was "very satisfactory" and he was confident they could finance the Gulf state's future mega projects.

Sheikh Salem Abdulaziz Al-Sabah, in remarks to Arabic daily Al-Dar, said an early warning system would be set up to guard against any banks running into financial problems while new policies would be introduced aimed at "improving risk management".

In comments cited by KUNA News Agency, the governor also said Islamic banks' activities were fully monitored and regulated, in addition to their own Sharia-compliance supervision.


On banks liquidity, Sheikh Salem said the situation was very satisfactory, adding that setting provisional sums aside would be looked at on "a case by case" basis.
The central bank was also willing to provide extra facilities where national projects were concerned, he added.
"We have no doubt the banks are well up to the task of financing state projects and meeting the demands throughout execution...Mega projects, of course, require several years to complete, and this allows good time for the banks to adjust," he told the paper.
Earlier this month, Kuwait's parliament approved a $104.3 billion four-year development plan aimed at decreasing the Gulf Arab state's dependence on oil, and boosting private sector participation in projects.
The plan, which runs to 2014, also includes investment on raising oil and natural gas production.

Kuwait, the world's fourth largest oil exporter, is expected to spend $145-$180 billion dollars in its 2010/11 budget.

1 comment:

Bibi said...

Hatha ekalam el Zain ..yeshra7 e9ader ..Allah etamim 3ala deratna