KUWAIT, Feb 13 (KUNA) -- The Kuwaiti banks are poised to finance the next state projects according to the credit plan law recently approved by the National Assembly , head of the board of the Kuwait Banks Federation Hamad Al-Marzouq asserted here Saturday.
Marzouq said in a press statement that Kuwaiti banks, with what they have of financial leverage and big technical capabilities that enabled them to bypass the most serious crisis seen by the global economy can meet the funding requirements of the coming stage.
He also noted that Kuwaiti banks have previously bankrolled various gigantic multi-billion projects like Equate, sanitary drainage water recycling projects and many other key development projects, confirming that sound credit tools should be credited with banks as they have professional credit expertise, technical infrastructure and high capabilities on the management of risks.
Regarding the recent ramblings that Kuwait banks decline to fund projects, Marzouq said that, "this is totally groundless and providing credit is a main task of the banking sector and a mainstay of its growth." He went on to say that banks' declination to provide funds to a very limited number of firms is due to the non-correspondence of the financial and credit status of such firms to the sound credit requirements observed by the banks, pointing out to a growth in credit portfolios of the local banks at a rate of six percent in 2009 despite the hard economic conditions and scarcity of key state projects.
Marzouq also said that local banks look forward to the coming stage under the directives of H.H. the Amir of Kuwait and in view of what they perceive of serious steps taken by the legislative and executive authorities to reactivate the engine of the economy through proposing vital development projects in all sectors.
He concluded with saying that providing systematic and sound credit is second nature to the local banks and that they will not fall back on shouldering their responsibilities and role in bankrolling such projects in what brings benefits to the national economy. - Kuna