Kuwait debtors' bailout may cost $2.61bn

A government bailout of Kuwaiti debtors is expected to cost KWD744m (US$2.61bn), finance minister Mustapha al-Shamali said on Tuesday.

The government, under pressure from members of parliament, is discussing with lawmakers a plan to write off the interest on Kuwaiti citizens' personal bank loans taken out before the end of March 2008.

"This is an issue that will be raised tomorrow in parliament," Shamali told reporters on the sidelines of a meeting of Arab finance ministers and central bankers in Dubai.

Asked what the total size of the bailout would be, he replied: "KWD744m. The payment mechanism is that they will pay their debts all the way directly to the government."

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