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Kuwait: Limited Exposure to Collapse of SVB

The financial sector in Kuwait said that it had registered limited exposure to the collapse of Silicon Valley Bank. (Asharq Al-Awsat)
The financial sector in Kuwait said that it had registered limited exposure to the collapse of Silicon Valley Bank. (Asharq Al-Awsat)
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Kuwait: Limited Exposure to Collapse of SVB

The financial sector in Kuwait said that it had registered limited exposure to the collapse of Silicon Valley Bank. (Asharq Al-Awsat)
The financial sector in Kuwait said that it had registered limited exposure to the collapse of Silicon Valley Bank. (Asharq Al-Awsat)

The financial sector in Kuwait announced that it had registered limited exposure to the collapse of Silicon Valley Bank.

The Central Bank of Kuwait (CBK) affirmed on Sunday that the exposure of Kuwaiti banks to Silicon Valley Bank (SVB), following the closure of the bank by the US authorities, was “very, very limited”.

The National Bank of Kuwait (NBK) said in a statement that its exposure was “minimal” and would not affect the bank’s financial position.

The disclosure published on the Boursa Kuwait website said NBK’s small exposure was represented in off-balance sheet items in the form of letters of guarantee worth $4.9 million (around 1.5 million Kuwaiti dinars).

For its part, Kuwait Finance House announced on Monday that the value of its exposure to the Silicon Valley Bank was in the range of 381,000 Kuwait dinars ($1.2 million).

Eight Kuwaiti banks listed on the Kuwait Stock Exchange confirmed Monday that they were not exposed to SVB, which was closed by the US authorities due its bankruptcy last week.

Those included Warba, Boubyan, Kuwait International (KIB), Ahli United, Al Khaleej, Al-Tejari, Al-Ahli and Burgan.

In its statement, the CBK pointed to the stability of the conditions of the banking system’s units.

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IMF's Georgieva Says US Tariffs Represent Significant Risk to Global Outlook

International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US September 4, 2018. REUTERS/Yuri Gripas/File Photo 
International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US September 4, 2018. REUTERS/Yuri Gripas/File Photo 
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IMF's Georgieva Says US Tariffs Represent Significant Risk to Global Outlook

International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US September 4, 2018. REUTERS/Yuri Gripas/File Photo 
International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, US September 4, 2018. REUTERS/Yuri Gripas/File Photo 

Sweeping tariffs announced on Wednesday by US President Donald Trump pose a significant risk to the global economy at a time when growth has been sluggish, the head of the International Monetary Fund said in a statement on Thursday.

IMF Managing Director Kristalina Georgieva said it was important to avoid steps that could further harm the global economy and appealed to the United States and its trading partners to work constructively to reduce tensions, according to Reuters.

“We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth,” Georgieva said in her strongest comments to date on the risks posed by the US trade actions.

“It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”

Georgieva said the IMF would provide its assessment of the announced tariffs when it releases an update to its World Economic Outlook during the April 21-26 meetings in Washington, DC, that bring together members and shareholders of the IMF and the World Bank.

The head of the global lender on Monday told Reuters that Trump's push for wide-ranging tariffs was creating great uncertainty and denting confidence, but it was not likely to trigger a near-term recession.

At the time, Georgieva said the IMF would likely lower the economic outlook slightly, adding “we don't see recession on the horizon.”

The US tariffs announced on Wednesday went far beyond the levels that had been predicted or expected by trade experts.