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Fri 22 Jan 2010 09:42 AM

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Kuwait lenders mull $7bn 'stability' fund - paper

Fund designed to buy stakes in big operational firms in market; buy assets in firms.

Kuwait lenders mull $7bn 'stability' fund - paper
BIG FUND: The fund would be set up through banks and government investment.(Getty Images)

Kuwaiti lenders have discussed a proposal to set up a "financial stability" fund with capital of up to KD2bn ($6.97bn) to buy stakes in firms, a Kuwaiti daily said on Thursday.

"It is designed to first to buy stakes in big operational firms in the market, besides buying assets in firms," Kuwaiti newspaper Al Qabas said in an unsourced report.

The fund, which would be set up through banks and government investment, will be worth between 1bn and KD2bn, Qabas said.

Troubles at several prominent investment firms in the OPEC member, including Global Investment House and Investment Dar, prompted the government to approve a $5bn stimulus package in April to help weather the global economic downturn. (Reuters)

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