| 03 Dec 2008 |
|
Banks under pressure to start offering loans
- Text size
KUWAIT CITY: Several local banks are reportedly being pressurized to get involved in lending procedures for the benefit of investment companies, reports Al-Qabas daily.
"The kind of push and pressure banks are receiving from certain quarters is really baffling," says a source in the banking field. Reportedly, several investment companies want to borrow from foreign banks, but want local banks to offer guarantees. "Some of these companies are pushing banks to protect their assets with full guarantees for the loans while many others are asking banks to ensure that the net value of their assets doesn't fall at any cost. The banks are now at a crossroads and don't know which direction to follow," added the source.
Another banking executive said it is very surprising that companies are asking their involvement at a time when banks still expect them to respond to their inquiries. He noted that the banks are not against getting involved, but since the loans are to be paid to foreign banks, the companies should meet loan conditions. He said they will consult the Central Bank of Kuwait (CBK)Central Bank of Kuwait (CBK)
in this regard and if it allays fear of negative consequences, they will join hands with CBKCBK to bail out these companies.Citing Kuwait Chamber of Commerce and Industry's (KCCI)Kuwait Chamber of Commerce and Industry's (KCCI)
statement in which it said the issue has transcended bailing out companies or individuals as it has to do with state's economy and external image, the source said, "if companies fail to pay back, it will affect the country's image adversely." We cannot afford to fall into another pit after the recent experience of the Gulf BankGulf Bank, the banker noted.
x
DISCLAIMER
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
Access to this article is subject to specific terms and condition.
More News in Financial Services
Loading ...Free Newsletter
Get the latest news from Financial Services and other Free newsletters.
Post a Comment
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.