Kuwait's investment companies lose $32 bln in 6 months
www.chinaview.cn 2009-03-24 21:51:56   Print

Special Report: Global Financial Crisis

    KUWAIT CITY, March 24 (Xinhua) -- Kuwaiti investment companies have lost 9.2 billion Kuwaiti dinars (32 billion U.S. dollars) from the start of the global financial crisis last August to the end of this January, Kuwait News Agency (KUNA) Tuesday quoted official data as saying.

    The figures published by the Central Bank of Kuwait (CBK) said overall capital of conventional and Islamic companies at the end of January stood at 20.8 billion dinars, compared to 30 billion dinars in July.

    In other words, up to 9.2 billion dinars, or 30.6 percent of the investments, were lost in the six months.

    The main reason behind the slump was the heavy loss of the companies' portfolios in Kuwait Stock Exchange, which witnessed a 45.5 percent drop from 16.7 billion dinars to 9.1 billion dinars.

    The companies' stakes in foreign markets also register a drop of 19 percent, from 2.1 billion dinars to 1.7 billion dinars.

    Kuwait cabinet is expected to pass a 5-billion-dollar stimulus package and a plan to launch a financial regulator which aims at helping struggling investment companies and offering loan guarantees.

    But the political instability in the country delayed the bailout plan which was unveiled in February.

    Kuwait Emir Sheikh Sabah al-Ahmad al-Sabah dissolved the parliament last week and called for a new election within two months to end a longtime political stalemate between the government and lawmakers. (1 Kuwait dinar = 3.4 US dollars) 

Editor: Fang
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