Kuwait’s cabinet today is expected to pass a 1.5 billion dinar (Dh18.99bn) stimulus bill that had become mired in political infighting before the country’s parliament was dissolved last Wednesday.
The stimulus bill, if passed, would be one of the region’s most comprehensive, analysts said today. It is expected to include provisions for handling bad debt and restoring the nation’s banking system to health. While most Gulf countries have responded to the financial crisis with bailouts and cash injections into stalled lending markets, Kuwait’s proposed package represents a more choreographed attempt to buoy up the banks and investment companies that dominate the financial landscape.
“We’ve been waiting for months now, and the only reason why it has been in limbo has been the political deadlock,” said M R Raghu, the head of research at Markaz, a Kuwaiti investment company. “Some groups were totally opposed to it, and others said it was only possible if you rescued citizens and consumers as well [as financial institutions].”
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