Kuwait tightens control on investment firms
Kuwait, June 9, 2010
Kuwait's central bank has tightened control on borrowing in the country's investment sector and given companies two years to comply, state news agency Kuna said on Wednesday.
The central bank governor, Sheik Salem Abdul-Aziz al-Sabah, told Kuna a revision of the regulator's policies showed the need for new controls on financial leverage, liquidity and international borrowing.
He said the global financial crisis uncovered weaknesses in risk and asset management in some of the country's investment companies.
Kuwaiti investment houses were hard hit during the crisis, which prompted the government of the world's fourth-largest oil exporter to approve a rescue package worth KD1.5 billion ($5.12 billion) last year.
The governor said investment companies will have until mid 2012 to comply with the new rules. He said measures will be taken against companies that don't show progress in applying them. He did not elaborate. – Reuters