Kuwait applies new measures on investment firms
10 Jun 2010
(MENAFN) Kuwait’s central bank announced new policies tightening control on borrowing in the country’s investment sector and giving firms two years to comply with the new rules, KUNA reported.
The central bank governor, Sheik Salem Abdul-Aziz Al-Sabah, said that a revision of the regulator’s policies has showed the need for new controls on financial leverage, liquidity and international borrowing.
He said that the global financial crisis uncovered weaknesses in risk and asset management in some of the country’s investment companies.
Al-Sabah noted that Kuwait’s investment firms have been hit hard amid the global financial crisis, which prompted the government of the world’s fourth-largest oil exporter to approve a rescue package worth $5.12 billion last year.
The governor also said that the country’s investment companies will have until mid 2012 to comply with the new measures.