Governor of the Central Bank of Kuwait Sheikh Salem Al Sabah hits back at critics
Governor of the Central Bank of Kuwait Sheikh Salem Al Sabah
"People are thinking they will get grants, cheap funds. It is not like that. It is a Financial Stability Law to ensure the banking system’s stability, which is concern number one. Investment companies can fail. Banks will take provisions; that’s all"
On whether or not the March 2009 Financial Stability Law should have had less onerous conditions "There are many requirements, [such as] the way the company will be revived and the power to inspect the activities of directors"
Al Sabah’s answer to why so few investment companies applied for protection from creditors or financial support within the law
"If we have seen within the two years there is gradual, serious improvement, we will take this into consideration"
On the length of warning period for investment firms not complying with the central bank’s new prudent ratios by June 2012
"Without privatization, the available investment opportunities are limited. There has been an understanding between government and parliament that it is high time to diversify the economy"
On the danger of bubbles recurring in the local real estate and stock markets
"The most difficult part in privatization will be the issue of employees"
On clauses in the new privatization law to soften redundancies
"We believe we can [become an international financial centre] via legislation, amendments and preparing the infrastructure.