Kuwait cabinet approves $1.4bn Gulf Bank issue

HUGE LOSSES: Kuwait's cabinet OKs Gulf Bank's $1.4 billion emergency rights issue. (Getty Images)

Kuwait's cabinet approved on Tuesday a $1.4 billion emergency rights issue by troubled Gulf Bank, state news agency KUNA reported, to cover huge currency derivatives losses.

"The cabinet... has decided to approve a draft law to increase Gulf Bank's capital and refer it to the emir," KUNA quoted a statement by the cabinet as saying.

The cabinet also authorised Kuwait Investment Authority, the country's sovereign fund, to buy up any unsubscribed stock from the capital increase which it will offer later in a public offering to citizens, added the statement.

Shareholders in Gulf Bank approved earlier this month a 375 million dinar ($1.36 billion) emergency rights issue as part of a rescue package ordered by the central bank for the country's fourth-largest lender by market value. (Reuters)

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