Central Bank bans using state property vouchers as collateral
The Central Bank of Kuwait has directed local banks and finance companies not to rely on state property vouchers as collateral for credit facilities, nor to include them among guarantees in future regulatory reports. It also emphasized the need for a comprehensive assessment of the facilities granted against these guarantees, along with an evaluation of the necessity for additional collateral within an appropriate timeframe. This aims to rationalize and organize credit policies, reduce credit risks, and ensure their enforceability and liquidity when needed.
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