Kuwait lenders mull $7 bln 'stability' fund -paper

* username: rupertbu

Kuwaiti lenders have discussed a proposal to set up a "financial stability" fund with capital of up to 2 billion dinars ($6.97 billion) to buy stakes in firms, a Kuwaiti daily said on Thursday.

"It is designed to first to buy stakes in big operational firms in the market, besides buying assets in firms," Kuwaiti newspaper al-Qabas said in an unsourced report.

The fund, which would be set up through banks and government investment, will be worth between 1 billion and 2 billion dinars, Qabas said.

Troubles at several prominent investment firms in the OPEC member, including Global Investment House (GLOB.KW) and Investment Dar (TIDK.KW), prompted the government to approve a $5 billion stimulus package in April to help weather the global economic downturn.END