15 September 2010
KUWAIT: The cabinet has agreed on a KD30 billion support package to finance the development plan projects, with the funding to be supervised by the Central Bank. It is hoped that the new package will help local banks and real estate firms, as well as boosting confidence in the transactions between the banks and companies involved in carrying out the projects. According to a government insider, the cabinet has expressed willingness to support banks through guaranteeing the funds there or providing long-term credit facilities which can help the banks to raise the necessary financing.
The government would also ensure that lending conditions were facilitated, as well as helping to support the Central Bank's financing process and creating a dynamic mechanism to ensure that banks' rights are observed. The average cost of annual investment in any of the development projects has been estimated at around KD7.7 million, reported Al-Watan. The projects are being carried out in a wide variety of fields, including oil and natural gas extraction and extensive infrastructure development, which will include the expansion and modernization of the sewage network among much else.
During next week's cabinet meeting, Sheikh Ahmad Al-Fahad Al-Sabah, the Deputy Prime Minister for Economic Affairs and State Minister for Housing and for Development, is expected to unveil the strategy to be used to detect and deter financially unsound private sector investors who may be unable to commit fully to their obligations, as well as discussing another plan on how the projects budget should be allocated. Sheikh Ahmad Al-Fahad is also set to present a report on the economic projects involved in the development plan, which will subsequently be submitted to the National Assembly (parliament) to be voted on. These projects include amendments to the existing Public-Private Partnership (PPP) law, as well as the introduction of legislation controlling competition and protecting consumers.
KUWAIT: The cabinet has agreed on a KD30 billion support package to finance the development plan projects, with the funding to be supervised by the Central Bank. It is hoped that the new package will help local banks and real estate firms, as well as boosting confidence in the transactions between the banks and companies involved in carrying out the projects. According to a government insider, the cabinet has expressed willingness to support banks through guaranteeing the funds there or providing long-term credit facilities which can help the banks to raise the necessary financing.
The government would also ensure that lending conditions were facilitated, as well as helping to support the Central Bank's financing process and creating a dynamic mechanism to ensure that banks' rights are observed. The average cost of annual investment in any of the development projects has been estimated at around KD7.7 million, reported Al-Watan. The projects are being carried out in a wide variety of fields, including oil and natural gas extraction and extensive infrastructure development, which will include the expansion and modernization of the sewage network among much else.
During next week's cabinet meeting, Sheikh Ahmad Al-Fahad Al-Sabah, the Deputy Prime Minister for Economic Affairs and State Minister for Housing and for Development, is expected to unveil the strategy to be used to detect and deter financially unsound private sector investors who may be unable to commit fully to their obligations, as well as discussing another plan on how the projects budget should be allocated. Sheikh Ahmad Al-Fahad is also set to present a report on the economic projects involved in the development plan, which will subsequently be submitted to the National Assembly (parliament) to be voted on. These projects include amendments to the existing Public-Private Partnership (PPP) law, as well as the introduction of legislation controlling competition and protecting consumers.
© Kuwait Times 2010
