Mubasher: Abyaar Real Estate Development has started executing a memorandum of understanding (MoU) with a local bank to settle its financial liabilities which have been allocated to the company in the form of credit facilities at a total value of KWD 20.4 million.

The Boursa Kuwait-listed company said on Monday that it sold five land plots in Dubai, the UAE. These land areas were in mortgage for the bank when the loan deals were signed.

Therefore, a reduction of 23% in the company’s liabilities to the bank will be witnessed at a value of KWD 4.7 million. Abyaar is also forecast to generate book losses of KWD 17.8 million.

Abyaar noted that the financial impact of this process will be registered in the income statements of the second quarter of fiscal year 2019.