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Only two Kuwaiti banks involve in Dubai World debts - CBK |
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Tuesday, 01 December 2009 08:52 |
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Central Bank of Kuwait (CBK) Governor Sheikh Salem Abdulaziz Al-Sabah said Monday
CBK was following media reports over request by Dubai World and its real estate arm, Nakheel, to delay payments of their multi-billion-dollar debts for six months.
Al-Sabah, speaking to KUNA, said CBK was following the local, regional and international reactions to the Dubai World's demand to delay payments for roughly USD 60 billion.
CBK has carried out an initial survey to know impacts of such a reques on banks in Kuwait, he said, and showed that only two local banks were involved in these debts.
Al-Ahli Bank of Kuwait has USD 20 million in bonds for Nakheel while the Gulf Bank has USD 28 million in unfunded risk participation for Dubai World, both expire in June 2010, explained the governor.
The other eight banks in Kuwait have no demands for Dubai World, the emirate's state-backed flagship in global investments, nor Nakheel, he said.
"Our national banks are distant from any consequences of the crisis of these two companies," he said.
The Kuwaiti banks are protected by three boundaries to protect their financial positions, said Al-Sabah, like enough capitals and a comprehensive guarantee for all types of deposits, as wel as boosting financial stability in Kuwait.
Although the Kuwaiti banks enjoy surplus in cash, Al-Sabah said, CBK was ready to provide whatever cash needed by the banks if necessary. - Kuna
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