Sunday 8 February 2009

Gulf progresses on bailouts

As US politicians prepare to vote on their economic stimulus package – expected to be about US$780 billion (Dh2.84 trillion) – governments in the Gulf are working on similar measures to breathe life into ailing economies.

Abu Dhabi last week announced a Dh16bn injection of fresh capital into five of the emirate’s banks, a move aimed at shoring up balance sheets and sustaining lending as the global slowdown bites.

And Kuwait’s parliament is soon to consider a broad rescue package that would help its troubled investment firms. The intent, according to a statement from the nation’s Cabinet, is to “safeguard the financial system and stabilise the domestic economy against the fallout of the global economic crisis”. Earlier reports said at least 4bn Kuwaiti dinars (Dh49.79bn) would be used to guarantee existing loans and trigger new lending.

No comments:

Post a Comment