The Kuwait Economic Society (KES) suggested that a special fund be founded by private sector companies in order to compensate public funds that were lost after the government tried to save private companies during the economic downturn.
Published Date: February 22, 2009
By Kuwait Times
KUWAIT: The Kuwait Economic Society (KES) suggested that a special fund be founded by private sector companies in order to compensate public funds that were lost after the government tried to save private companies during the economic downturn. Speaking during the press conference, KES chairperson Dr Rola Dashti said that the suggested fund could be described as a 'salvation project.' She added that, according to the motion, private companies would contribute 7.5 percent of their profits while foreign
companies would only have to pay 5 percent.
With this fund, the private sector will partake in solving the economic problem and, at the same time, ensure citizens that funds used to save certain companies would be regained in full," she explained, urging MPs to adopt this motion and stay in contact with KES for consultations.
She also asked the financial and economic committee of the Kuwait Parliament to invite KES to its meetings in order to discuss the project. She also said that companies who benefited from the new law would be mandated to hire Kuwaitis to form at least 35 percent of their employees.
KES member Dr Abdul Hameed Hussein said that the global economic crisis had negative impacts on local markets. He also highlighted that some economic and investment decisions were unwise and risky and that public funds should not be utilized to support the makers of such decisions.
However, economic problems do create some investment opportunities and this present crisis is no exception," Hussein said, pointing out the existence of real chances of reform and revival of the private sector and its impact on increasing Kuwait's GDP through effective contributions in solving this and possible future crises.
The current law only focused on supporting the banking sector," he added, noting that this project had been described by local media as the 'economic stability project.'
Kuwait University professor Abdullah Al-Salman said that solving the banks' problems should stem from holding the banks' directors and shareholders responsible for the losses. He added that they should then increase the bank's capital through a public bidding. "The government will be the last resort if all attempts to solve the problem fail," he said.
Published Date: February 22, 2009
By Kuwait Times
KUWAIT: The Kuwait Economic Society (KES) suggested that a special fund be founded by private sector companies in order to compensate public funds that were lost after the government tried to save private companies during the economic downturn. Speaking during the press conference, KES chairperson Dr Rola Dashti said that the suggested fund could be described as a 'salvation project.' She added that, according to the motion, private companies would contribute 7.5 percent of their profits while foreign
companies would only have to pay 5 percent.
With this fund, the private sector will partake in solving the economic problem and, at the same time, ensure citizens that funds used to save certain companies would be regained in full," she explained, urging MPs to adopt this motion and stay in contact with KES for consultations.
She also asked the financial and economic committee of the Kuwait Parliament to invite KES to its meetings in order to discuss the project. She also said that companies who benefited from the new law would be mandated to hire Kuwaitis to form at least 35 percent of their employees.
KES member Dr Abdul Hameed Hussein said that the global economic crisis had negative impacts on local markets. He also highlighted that some economic and investment decisions were unwise and risky and that public funds should not be utilized to support the makers of such decisions.
However, economic problems do create some investment opportunities and this present crisis is no exception," Hussein said, pointing out the existence of real chances of reform and revival of the private sector and its impact on increasing Kuwait's GDP through effective contributions in solving this and possible future crises.
The current law only focused on supporting the banking sector," he added, noting that this project had been described by local media as the 'economic stability project.'
Kuwait University professor Abdullah Al-Salman said that solving the banks' problems should stem from holding the banks' directors and shareholders responsible for the losses. He added that they should then increase the bank's capital through a public bidding. "The government will be the last resort if all attempts to solve the problem fail," he said.
