KUWAIT CITY, Jan. 25 (Chinese media) -- The banking assets in Kuwait increased 10.6 percent in 2008 compared to previous year despite the current global recession which hit major investment banks in the oil-rich state, Central Bank of Kuwait (CBK) sources was quoted by the Kuwait News Agency on Sunday as saying.
The increase in banking asset value was 3.2 billion Kuwait Dinars (about 11.52 billion U.S. dollars), shooting up from 35.5 billion dinars in 2007 to 39.3 billion dinars in 2008.
Of the total asset value, the public sector accounted for 25.4 billion dinars, the private sector accounted for 2 billion dinars and foreign investors accounted for 8.8 billion dinars.
There was a spike of 15.7 percent in the local assets of foreign banks, while local banks, deposits went up by 21.6 percent over one year.
Loans and credit facilities also saw a marked hike in 2008 compared to a year ago, having gone up over 17 percent compared to2007 end.
These reports by CBK are significant in the backdrop of shocking falls in the investment sector such as Kuwait's largest investment bank Global Investment House announced earlier in the month that it had defaulted on most of its debts, while Islamic firm Investment Dar said it needs loans up to one billion U.S. dollars to refinance debt.
Earlier in the week cabinet sources said that the government is facing increased pressure from investment firms, which make up more than half of the state's listed companies, asking for liquidity support.
The announcement Saturday by Kuwait's central bank governor to present a plan to the government Monday to further shore up Kuwait's economy and banking sector in the face of the global financial crisis would be some relief for the troubled firms.
Meanwhile, the governor's statement has already given an impetus to Kuwait Stock Exchange with investors buying into blue-chips on Sunday.(one Kuwait Dinar = about 3.6 U.S. dollars)
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