Gulf Bank losses under probe
Kuwait, November 7, 2008
Kuwait's Gulf Bank, which received emergency support after being hit by derivatives losses, said the extent of the losses was being studied by external auditors.
'The losses incurred by Gulf Bank will be specified only after receipt of the report of the external auditors to the board of directors,' the bank said in a statement on Thursday after its directors met central bank governor Sheikh Salem Abdul-Aziz Al-Sabah.
'The Governor of the Central Bank of Kuwait stressed that it remains essential to safeguard the depositors' funds, and the shareholders' rights, as well as studying the best options and solutions to restore the shareholders' rights as they were on 30/9/2008,' the statement said.
With the global financial turmoil spreading to the Gulf Arab region, the central bank has appointed a treasury supervisor for Gulf Bank and guaranteed deposits.
The bank has said it was considering all options, including a capital increase. Finance Minister Mustapha Al-Shamali said in late October the government was ready to invest in the capital hike if the bank's shareholders failed to secure the funds.-Reuters