Kuwaiti investment companies need government intervention to overcome the effects of the economic crisis, and failing to deal with their debt may hurt banks in the country, said Asaad al-Banwan, chairman of the Union of Investment Companies.
“The continued weakness of investment companies and their inability to service their debt may cause a significantly negative impact on the performance of local banks,” al-Banwan said in an e-mailed statement today.
“Challenges of the financial crisis can be overcome by government interference, and Kuwait is not an exception,” he said. Given a lack of funding channels for investment companies, the union “sees the necessity for the government to review its stand toward the investment sector,” al-Banwan said.
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