Fitch Rating Agency revealed that Kuwaiti banks are the ablest to recover in the Gulf countries, in light of the decline in oil prices and the effects of the spread of the new Coronavirus economically.
A report by Fitch showed that Kuwait banks are better able to recover than most of their counterparts in the Gulf Cooperation Council countries in the current crisis of falling oil prices and the effects of the Coronavirus.
Fitch pointed out that the recent sharp drop in oil prices will have adverse effects on Kuwait's public finances and debt path and will increase pressure on banks.
The agency expected that the interest rate cuts would harm the net profits of Kuwaiti banks. Fitch showed its estimates that the Kuwaiti authorities can cover the country's needs for financing and liquidity from balances of public finances and possibly larger issues of international bonds.
Source (Al-Arabiya.net Website, Edited)
