Kuwait's economy may contract by 1.5 to two percent this year before starting to grow again in 2010, Central Bank Governor Sheikh Salem Abdul Aziz Al-Sabah said on Monday. “We expect growth but so far we have not found a proper figure to be estimated for 2010, it depends on so many variables,” he said on the sidelines of the Kuwait Financial Forum at the Sheraton Hotel. Asked how much he expected the economy to contract this year, “From 1.5 to two percent,” Kuwait Times quoted Sheikh Salem as saying. He expressed confidence on the financial situation of Kuwaiti banks. He said this year indicated positive growth rates in deposits and loan portfolios of the private sector. “This growth came from private sector deposits which reached 23.8 million Kuwaiti dinars, reflecting a growth of 15.2 percent from last year,” Salem said. He also highlighted the importance of amending monitoring standards on the international level regarding both capital and liquidity. “It is also important to deal with the standards of capital sufficiency which was set during the Basil 2 conference slowly and gradually in order not to obstruct loans and credits which is also important in the techniques of collective economics in the Arab world without neglecting the need of the banking sectors to strengthen its capitalist bases.”
