KUWAIT: Kuwait’s central bank governor gave assurances that citizens and firms in all sectors of the economy would benefit from a proposed rescue plan which aims to encourage banks to lend up to 4 billion dinars ($13.6 billion).
“This financing will be available to everyone — companies, institutions and citizens,” Sheikh Salem Abdul-Aziz Al-Sabah told the state news agency KUNA. He said the financing would be provided this year and in 2010 for fields ranging from farming, to industry, trade, construction, oil, petrochemicals, and services. He said only crisis-hit investment companies that are able to continue their activities would qualify for funds, KUNA said.
The OPEC oil exporter’s government has been under pressure to rescue investment firms, which make more than half of listed firms. “These funds do not belong to the state, but to banks that would extend it to those active in productive economic sectors to reactivate economic activity,” Sheikh Salem said, adding that the state would guarantee 50 percent of the bank loans.
