KUWAIT CITY: The Kuwaiti Cabinet yesterday approved in principle an economic rescue package aimed at protecting the financial system from the fallout of the global economic downturn, an official statement said.
The Cabinet backed the “principles” of draft legislation aimed at “consolidating financial stability in Kuwait and safeguarding it from any shocks,” a statement issued by the Cabinet following its weekly meeting said. The plan was presented by governor of the central bank of Kuwait, who heads a task force set up to deal with the impact of the global financial crisis on the Gulf state.
“The Cabinet asked the task force to study comments and amendments made (by ministers) to the draft legislation and submit it to the cabinet in its final form for approval and referral to Parliament,” the statement said.
It set no date for its next meeting but Parliament is due to discuss the package and the related legislation in a special session on Feb. 10. The plan calls for speedy measures to rescue a number of troubled investment companies that have failed to repay their local and foreign debts.