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 sd, 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
 Jun 30 2016 - Tennis: Roger Federer ends Willis' Wimbledon fairytaleMuscat Daily
(MENAFN - Muscat Daily) Marcus Willis'' Wimbledon fairytale came to an end against Roger Federer, but the British qualifier''s 6-0, 6-3, 6-4 defeat couldn''t ruin a day to remember for the new star ...

 Jun 30 2016 -  Tough love: psychology of Argentina's Messi relationshipMuscat Daily
(MENAFN - Muscat Daily) Like neurotic parents, Argentines swung from criticism to unconditional love for their star footballer Lionel Messi this week, providing the soccer-mad nation''s many ...

 Jun 30 2016 -  Cricket: Anil Kumble takes charge with eye on bowlersMuscat Daily
(MENAFN - Muscat Daily) Anil Kumble thinks a year - and 17 Test matches - is enough for India to make its mark on all three formats of cricket. Kumble''s one-year contract as coach of the national ...

 Jun 30 2016 - Golden age Hollywood starlet Olivia de Havilland turns 100Muscat Daily
(MENAFN - Muscat Daily) Paris- Screen legend Olivia de Havilland, who turns 100 on Friday, is the last surviving star from "Gone with the Wind" and one of the last great stars of ...

 Jun 30 2016 - Obama to campaign with Clinton, Trump shrinks gapMuscat Daily
(MENAFN - Muscat Daily) Washington- President Barack Obama will campaign with presumptive Democratic White House nominee Hillary Clinton for the first time next Tuesday, as a new poll shows a ...

 Jun 30 2016 - New York's Empire State Building to go dark for TurkeyMuscat Daily
(MENAFN - Muscat Daily) New York- New York''s famed Empire State Building will go dark on Wednesday in tribute to the 41 people killed and 239 wounded in a suicide attack at Istanbul''s main ...

 Jun 30 2016 -  Brazil has 'total confidence' in Olympics securityMuscat Daily
(MENAFN - Muscat Daily) Rio de Janeiro- Brazil has "total confidence" that it can ensure security for more than half a million tourists and athletes attending the Rio Olympics this August, ...

 Jun 30 2016 -  Eight killed as fire guts pharmacy in IndiaMuscat Daily
(MENAFN - Muscat Daily) Mumbai- Eight people were killed when a fire gutted a pharmacy in India''s financial capital Mumbai on Thursday, police said. One other person was seriously injured in the ...

 Jun 30 2016 -  Engine failure, errors by crew led to deadly Taipei crash: reportMuscat Daily
(MENAFN - Muscat Daily) Taipei - A plane crash in Taiwan that killed 43 people when a passenger jet plunged into a river was caused by engine failure and flight crew errors, a damning final ...

 Jun 30 2016 - NY entrepreneur swapping start-ups for charityMuscat Daily
(MENAFN - Muscat Daily) New York- After making millions before turning 40, a New York-based entrepreneur is dreaming of transforming charitable giving by bringing his start-up stardust and ...

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