Letters of Credit Department Manager at Kuwait Finance House (KFH) Raad Al-Sabej said that the volume of letters of credit offered by the bank to its investors has witnessed a noticeable increase during Quarter 1 of this year, compared to same period last year. He added that the increase in services of letters of credit to finance imports and experts reflects KFH ability to attract new clients from various investment sectors, and highlights the investors' trust in the services offered by the bank. In addition, it also reflects the increase in new projects that companies execute in the local market through asking for financing.
Al-Sabej noted that this increase shows that the bank is committed to financing investors and the overseas trade between Kuwait and other countries, which reinforces Kuwait's economy relationships with its commercial partners, and boosts the national economy. He asserted that KFH is keen to apply advanced technology in the commercial financing sector through opening letters of credit and guarantee, which facilitates the business of investors and saves them time.
Moreover, Acting AGM for Finance Sector Waleed Al-Sumei noted that KFH offers its clients numerous privileges to ensure that their projects are executed and to boost projects in the local market. He explained that Murabaha allows the client to either pay in cash after the documents arrive, or postpone the installments for a year, based on the sources of income. He stressed that KFH has a strong relationship with overseas banks, not to mention its prestigious image that was gained after operating in several global markets, which makes it unnecessary for KFH to reinforce its credit.
Furthermore, Al-Sumei expected that there will be an increase in the demand for the opening of letters of credit during the coming period; especially after more development projects are offered by the government in the fields of health, education, oil, and housing, since those fields require letters of guarantee to finance importation.
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© Press Release 2012
