‘Restructuring of real estate sector & development of its mechanisms tied to decisions taken by CBK’

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Need to enhance stability of relevant laws: Al-Ghanim

KUWAIT CITY, Aug 1: Secretary of Kuwait Real Estate Union Qais Al-Ghanim says the restructuring of the real estate sector and development of its mechanisms are linked to the decisions taken by the Central Bank of Kuwait (CBK). He stressed that the future of real estate sector is determined by the bank’s financing of the projects.

Al-Ghanim said the banks have the right to review the bank guarantees provided by real estate companies so that the companies can be supplied with loans, indicating that the vague legal situation of some companies affirms the need for the banks to take precautionary measures before approving the loans. He stressed that the consequent crises that the real estate sector suffered have obligated the banks to be stricter in approving loans for financing real estate projects despite the fact that this sector is the second after oil sector in terms of high revenues.

Al-Ghanim revealed that the banks’ decisions in this regard are based on the decisions of Central Bank of Kuwait. He affirmed the need to enhance the stability of the relevant laws that organize the real estate sector in order to avoid negative decisions taken by the banks which can affect the financial procedures and result in delay in allocating loans beyond the specified dates

By Rabab Algohary Al-Seyassah Staff

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