Business | Banking
Kuwait 'tightens real estate lending'
Inflation in Kuwait hit a record 9.5 per cent in January as housing costs jumped 16.1 per cent, according to the latest data.
- Reuters
- Published: 00:33 May 15, 2008
Kuwait City: Kuwait's central bank is imposing restrictions on some real estate and share lending loans after having tightened restrictions on consumer lending to curb record inflation, a local newspaper said on Wednesday.
Inflation in Kuwait hit a record 9.5 per cent in January as housing costs jumped 16.1 per cent, according to the latest data.
Daily Al Qabas said in an unsourced report the central bank had informed local lenders they had to set a risk weight of 150 per cent in their balance sheets for commercial real estate and share buying loans.
The new rules would exclude loans for private mortgages and mainly aim to tackle rising housing prices, a main driver of inflation in the Gulf Arab state, said the paper.
The new rules will affect lenders' profits as well as trading on the Kuwaiti bourse as only limited loans will be given to buy shares in the stock market, said Qabas.
The central bank could not be reached for comment on Wednesday.
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