"The outlook for Kuwait's banking system remains stable, unchanged since 2011, Moody's Investors Service said in a new report, reflecting the expectation of a benign operating environment, supported by high oil revenues and government spending (mainly current account).
Over the 12-18 month outlook period, the operating environment for the banks will remain accommodative, underpinning the banking sector's robust capitalisation and ample liquidity. Moody's expects that Kuwait's non-oil 2013 GDP growth will increase to 3.2%, the highest rate for the past five years, mainly driven by the government's current account spending.
Meanwhile, although the implementation of the government's $110 bln national development plan continues to face delays in parliament, the recent adoption of electoral laws that favour the election of a pro-government parliament may accelerate related capital spending in 2014. In this environment, Moody's projects moderate credit growth of 5%-8% in 2013 rising to 8%-10% in 2014 as business opportunities related to the tendering of infrastructure projects pick up. "
'via Blog this'
No comments:
Post a Comment