Mubasher: Kuwait Finance House (KFH) has reported further developments regarding the article published on 19 September 2019 in Al Jarida Newspaper on Turkey asking banks to write off bad loans.
In this regard, KFH affirms that its unit in Turkey, KFH-Turkey, received a request from the Banking Regulation and Supervision Agency (BRSA) in Turkey concerning the write-off of bad debts by the end of 2019, and further allocating adequate provisions.
Additionally, preliminary studies were executed according to the instructions. The results recommended allocating precautionary provisions amounting to KWD 4.6 million, the bank disclosed to Boursa Kuwait on Sunday.
There is no financial impact on KFH Group’s financial position in the current time, the firm advised, noting that it will announce any new or material developments in a timely manner.
Earlier in September, KFH emphasised that its KFH-Turkey enjoys a “robust financial position and very strong liquidity ratios”. Additionally, it highlighted that KFH-Turkey’s coverage ratio of the NPF is 128%, thus, higher than the average 68% value of Turkish banks.
