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Global Downturn Sees Gulfinvest International Defaulting on Loan Repayments

Kuwait : 06 April 2010

A Kuwaiti based investment company has failed to meet its loan repayment commitments on time on a Dh200 million loan and this in turn is putting pressure on Shuaa Capital according to investment analysts.

Shuaa Capital is the most prominent investment bank in the UAE region and are confident that the default of this loan repayment will not put any additional pressure on their operations.

The Kuwaiti company in question is Gulfinvest International and they have stated that they did not meet their loan repayments target on this occasion because they instead used the money to purchase a stake in Al Ahli Holding which is another Kuwaiti company.

Shuaa have stated that it has already set aside adequate funds to counteract any potential default of this loan and that it will not place any additional pressure on its operations at this time.   Analysts are concerned, as Shuaa only recently announced that they made huge losses for 2009 and the GulfInvest guarantee may mean further turmoil in the near future.

Gulfinvest is one of a number of Kuwaiti companies who are witnessing a severe downturn in their turnover since the global recession began. The company is currently wading through a large number of debts that are now outstanding and has also defaulted on other repayments. At the present time it is estimated that they are trying to restructure debts worth in the region of Dh610.5 million.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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