Kuwait Finance House (KFH) has reported a sharp increase in the volume of its letter of credit (L/C) business in the first quarter of this year compared with the same period last year.

The bank also expects more L/C and bank guarantee business to finance imports in a raft of upcoming government backed development plans.

L/C volumes

According to the manager of KFH's L/C department, Raad Al-Sabej, the bank increased the volume of its L/C business by 10 per cent in the three months to March 2012 compared with the first quarter of 2011.

Al-Sabej says that KFH is writing more L/C business for both import and export transactions and that the local market is now demanding a wider range of trade and investment financing services.

He also says that KFH is keen to apply advanced technology in its commercial financing operations, which provide L/Cs and bank guarantees.

More growth

Acting general manager at KFH, Waleed Al-Sumei, expects to see further increases in L/C and bank guarantee business in the future.

He reckons several government backed development projects in the health, education, oil, and housing sectors will lead to higher volumes of import L/C and bank guarantees.

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