Kuwait Airways seeks bank loans to pay employees
Following a week of speculation that Kuwait Airways would resort to bank loans for the payment of employee salaries, the national airline has admitted the rumour is true.
"We got the approval of the cabinet to borrow from local banks to support the company's cash flow, including payment of salaries," company spokesman, Adel Boresly, told Reuters.
The loss-making airline is currently in the process of being privatised, with Citigroup, Ernst & Young and aviation services firm Seabury appointed to handle the process.
Under the plan, the government will sell 40 percent of the flag carrier to the public and 35 percent to a long-term investor.
While the amount of Kuwait Airways’ bank loans was not revealed by Boresly, the daily Al-Watan newspaper recently stated that Kuwait Airways needed 60 million dinars in liquidity.