Informed sources told Al-Rai that government assets, whether connected to the General Investment Authority or the Public Institution for Insurance, are not a candidate for cracking, even if a giant collapses, after the Central Bank of Kuwait asked local banks to determine their exposure to Credit Suisse, in terms of financing or investment, if any. One of the most significant banks in the world is a Swiss bank.
According to the sources, advisory relationships with Credit Suisse about various investments and mergers make up the majority of the relationship between government institutions investing globally. Regarding these organisations’ investment activities, they mostly target American banks like Bank of America, Morgan Stanley, and other foreign banks. grand.
The sources noted that there are probably no deposits for the Investment Authority or the Insurances with Credit Suisse, explaining that the officials of the two Kuwaiti institutions switched to banks that pay returns on their money, with a sizable portion of the dollar liquidity going to Kuwaiti banks, due to the interest in Swiss banks over the past few years and the adoption of what is known as zero and negative interest.
She claimed that in the case of “insurances,” the institution decreased its liquidity levels in the last five years from 42 percent to 3 percent, with the resulting amounts directed to investment, meaning a decrease in the weight of deposits initially with it, taking into account that all financial disputes related to the former general manager of The Foundation, Fahd Al-Rajaan, are connected to Switzerland, which motivated officials to stay away from this market as much as possible.
According to the sources, Credit Suisse is not listed with either party on the list of top portfolio managers for the shares of the “Investment Authority” and “insurances” that can be managed through it.
Even if Credit Suisse fails, the deposits with the Investment Authority and Insurance remain secure.
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