Tuesday 10 February 2009

Kuwaiti banks, firms may merge under rescue plan

Kuwaiti banks or investment firms may have to merge if they want to obtain state help under a $5 billion (Dh18bn) rescue plan, a bill devised by the central bank said.

On Thursday, the Gulf Arab state's cabinet approved a stimulus package worth 1.5 billion dinars ($5.08bn) including state guarantees of up to 50 per cent for fresh loans banks provide to local firms.

Investment firms getting loans which are backed by state guarantees have to comply with the plan's rule that "the firm enter a merger with one or several firms if this is required", according to the detailed plan.

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