According to Al Arabiya news channel, the Kuwaiti government finally passed the financial bailout package today. This is great news for banks and investment companies but we still don't know if any changes were made to the original plan.
The plan itself could cost the country a whopping 5 billion KD. However, Investment Companies have lost over 9 billion KD since the beginning of the meltdown, further augmenting the crisis.
We have yet to hear the Popular Bloc's response to this plan. An interesting week lies ahead.
Will Kuwaiti CEO's get to keep their bonusses? Hmmmm
Trackback: "To find out more please click here to read our post in Hilaliya’s blog". http://www.4thringroad.com/?p=2843
Thanks 4th Ring Road for the breaking news tip. I wonder what kind of political backlash ensues, as you mentioned in your post.
Here is additional information for the readers:
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLQ65562120090326
"UPDATE 1-Kuwait approves $5 bln economic stimulus plan-TV
Thu Mar 26, 2009 6:56am EDT
KUWAIT, March 26 (Reuters) - Kuwait's cabinet has approved a $5.2 billion economic stimulus package that had been delayed by bickering between the government and parliament, private television station Al Rai said on Thursday.
The station gave no source or details in its alert. Newspapers had earlier said the cabinet would approve the bill on Thursday by decree at an extraordinary meeting.
Kuwait, one of the world's biggest oil exporters, has been badly hit by the financial crisis and is the only Gulf country that has had to step in to save a big bank.
Last week, the emir dissolved parliament to end a political crisis that has delayed several economic laws. The head of state and the cabinet assumed the legislative powers of parliament until a new house is elected. They can pass urgent laws by decree and put them before lawmakers for formal approval after elections.
Investment companies, which make up half the listed firms on the Kuwait stock exchange, have said they need the stimulus package, which offers bank guarantees and helps banks unable to raise new funds since it allows the government to buy unsubscribed shares in banks' capital raisings. (Reporting by Ulf Laessing and Andrew Hammond; Editing by Lin Noueihed and Tim Pearce)"
It's such a huge relief to finally see some justified laws being passed and some well thought out plans being put to action. It's a shame that these backward thinking MP's that we've gotten used to for the past 3 or so years cannot seem to stop screaming and bickering to bring the country forward with just one step.
If the next parliament has the same faces of "7ads" and the other long li7ya short dishdasha conservatives then I hope it gets dissolved for good.
A classic case of daylight robbery. How exactly is this urgent? Insane, but I'm not surprised.
Now to see what will happen next! We need to get out of this rut!
Hi all,
This is amazing news. However, the law is still in Arabic, but you can find the translated version at the following websites:
www.bakertillykuwait.com
www.gckw.com
The full decree, an all its implications are available at the above websites.