Bahrain-based Arab Banking Corporation (ABC) agreed to write off 90 percent of the $120 million in debts owed to it by Kuwait's International Leasing & Investment Company, a Kuwaiti newspaper reported.

'The company will pay $12 million only to the bank which gave up $108 million,' said Arabic daily Al-Seyassha, adding that the company is currently negotiating the restructuring of its 60 million dinars ($218.6 million) debt to Kuwait & Middle East Financial Investment Co (KMEFIC).

The central bank has given the investment company a grace period until August 9 to settle its financial situation. - Reuters