Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Kuwait- CBK Gov. says economic reforms should be nat'l project  Join our daily free Newsletter

MENAFN - Kuwait News Agency (KUNA) - 21/04/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Kuwait News Agency (KUNA)) The Governor of the Central Bank of Kuwait (CBK) Dr. Mohammad Al-Hashel said Sunday economic reforms in the Gulf country should be a national inclusive project consisting of "legislative and institutional" initiatives.
At the yearly news conference, Al-Hashel said reports and studies have shown "chronic" challenges facing business environment in Kuwait which contributed to structural disorder of local economy.
The challenges are related to legislative and institutional infrastructure, as well as obstacles hampering the implementation of giant development projects, failure to comply with disclosure, transparency and governance, in addition to political disputes, he said.
Al-Hashel called for the improvement of business environment through cutting red tape procedures and expansion of private sector's role in pushing forward economic development.
He called for issuing new legislations to issue government sukuks.
"It is necessary to act actively to push forward the comprehensive economic reforms through a bundle of policies and integrated measures, which will contribute to improving economic environment, reducing red tape measures and boosting efficiency of government's performance," said Al-Hashel.
The governor said the local banking sector, which has solid capital and expertise, could contribute towards the implementation of the feasible development projects On the recent visit of the International Moentary Fund's (IMF) chief Christine Lagarde to Kuwait, Al-Hashel Lagarde commended Kuwait's monetary policy and urged the CBK to adopt precautionary policies to addres financial risks.
On the spending of Kuwait's government, Al-Hashel said the increase of expenditure and dependence on oil revenues were hampering sustainable economic development.
He called for linking incentives of the government job with productivity and discipline.
Al-Hashel said the private sector should be given a bigger role to collecting bills of government services like electricity and water, as well as placing a "sophisticated tax system that will boost the general budget."

Governor Al-Hashel said Kuwait, along with Bahrain, Saudi Arabia and Qatar, signed the GCC Monetary Union treaty, which came into force on February 27 2010.
The treaty, he added, called for the establishment of the Gulf Monetary Council which consisted of monetary institutions and central banks of the Gulf Cooperation Council (GCC) countries.
This Council, he said, would pave way for the establishment of the Gulf Central Bank to ultimately issue the single currency.
The council, which was completing its structure, named Dr. Khaled Al-Saad as Executive Officer on August 12 2012.
On the Kuwaiti Dinar's exchange rate against other currencies, Al-Hashel said the KD has been pegged since May 2007 on a "special and balanced basket of currencies of the major countries with which Kuwait has strong commercial and financial relations.
"This method provides suitable flexibility to absorb imported inflation pressure which are caused by fluctuations of exchange rates, which thus provides relative stability for the KD exchange rate against major currencies," he said.
Asked about the foreign currency reserve, Al-Hashel said it grew from KD 5.1 billion in 2009 to KD 8.3 billion last year, or by 12.6 percent.
Asked about the real estates, Al-Hashel said the CBK has specified as 15 years the maximum time for a borrower to pay back the housing loan, whose value should not exceed 15-fold of the monthly salary.
He said the housing loans were very organized because they were linked with the wages of the borrowers, the majority of them work in the government sector.

Governor Al-Hashel was asked about the Basel III reforms, and explained the reforms were developed by the Basel Committee on Banking Supervision with the objective of strengthening regulation, supervision and risk management of the banking sector.
He said CBK was complying with the Basel III in terms of capitals of local banks, which should be within limits that enable them expand their operations.
Al-Hashel, meanwhile, said opening of branches of foreign banks would improve competitiveness within banking sector thus improve services and create jobs for Kuwaitis.
The opening of these branches, he added, was a positive factor towards establishing a regional financial hub in Kuwait.
On the Islamic finance industry in Kuwait, Al-Hashel said it needed religious opinion providing the risks facing the banking transactions.
"The Kuwaiti market has reached a balancing phase between the traditional and Islamic banking, as there are five Islamic banks and five traditional banks in addition to a foreign Islamic bank branch," he said.
On the personal loans, the CBK chief said the monthly installment should not exceed 40 percent of the net wage of employee and 30 percent of retiree, in order to guarantee the borrower's income would not be dramatically affected.

 


Kuwait News Agency (KUNA)




  MENA News Headlines
 Nov 28 2014 - India says still searching for 39 workers seized in IraqArab News
(MENAFN - Arab News) NEW DELHI: India said Friday it was still searching for 39 construction workers abducted in Iraq in June denying a report claiming they had been executed by the Islamic State ...

 Nov 28 2014 - Gulf Asia approve steps to protect foreign workersArab News
(MENAFN - Arab News) KUWAIT CITY: Gulf and Asian labor ministers agreed Thursday on a series of initiatives aimed at boosting protection and improving conditions of employment for millions of foreign ...

 Nov 28 2014 - UAE hints at body to monitor forex pegThe Peninsula
(MENAFN - The Peninsula)   An advisory body to the UAE government has suggested that the central bank review the country's currency peg to the US dollar, but local bankers said any change to the peg ...

 Nov 28 2014 - Qatar bourse index down by 3.72pc last weekThe Peninsula
(MENAFN - The Peninsula)  Qatari bourse fell on heavy selloff on latest Opec pessimism on output cut. The benchmark index plunged by 1.39 percent to finish at 13,330 yesterday.The entire sector ...

 Nov 28 2014 - Qatar calls for creating Common Islamic MarketThe Peninsula
(MENAFN - The Peninsula)  Speaking on behalf of all Arab countries, Qatar's Minister of Economy and Commerce, H E Sheikh Ahmed bin Jassim bin Mohamed Al Thani, yesterday at the Ministerial Session of ...

 Nov 28 2014 - Saudis block Opec output cutThe Peninsula
(MENAFN - The Peninsula)  Saudi Arabia blocked calls yesterday from poorer members of the Opec oil exporter group for production cuts to arrest a slide in global prices, sending benchmark crude ...

 Nov 28 2014 - Don't bypass oil firm, Libya rival govt warnsThe Peninsula
(MENAFN - The Peninsula)  Libya's parallel government controlling the capital will take legal action against buyers of oil bypassing the Tripoli-based state oil firm National Oil Corporation (NOC), ...

 Nov 28 2014 - Qatar Airways partners with Coca Cola IPTLThe Peninsula
(MENAFN - The Peninsula)  Qatar Airways (QA) has teamed up with Coca-Cola International Premier Tennis League (IPTL) as the presenting sponsor for the inaugural edition of the event.The IPTL is the ...

 Nov 28 2014 - Aljazeera to hold global hackathonThe Peninsula
(MENAFN - The Peninsula)   Aljazeera is organising its first hackathon where some of the most innovative minds in media and technology from around the globe will work together and collaborate on the ...

 Nov 28 2014 - GCC 'Summit key to boosting unity'The Peninsula
(MENAFN - The Peninsula)  H M King Hamad bin Isa Al Khalifa of Bahrain yesterday met GCC Secretary-General Dr Abdullatif bin Rashid Al Zayani, who is on a GCC tour.King Hamad stressed the importance ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help