Kuwait financial sector 'nearly stable'

Kuwait's financial sector is more stable than in the fourth quarter but it is too early to say whether it has totally overcome the impact of the global crisis, the Gulf Arab state's central bank governor has said.

In October, Kuwait had to step in to save Gulf Bank, the only major bank in the Gulf Arab region requiring a government bailout. Meanwhile several major investment firms are struggling to get new loans.

Latest data on liquidity levels and earnings released by local banks are among indicators showing that the global financial crisis is now biting less, Sheikh Salem Abdul-Aziz al-Sabah told al-Rai newspaper in an interview.