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IFA agrees on settling KWD 25m loan

IFA agrees on settling KWD 25m loan
The company will pay KWD 6m as a settlement for the entire value of the loan
IFA
IFA
-0.87% 57.00 -0.50

Mubasher: International Financial Advisors (IFA) has reached an agreement with a bank to settle a loan valued at KWD 24.98 million ($81.9 million), excluding the interest rate due on 30 May 2019.

The company, listed on Boursa Kuwait and the Dubai Financial Market (DFM), will pay KWD 6 million as a settlement for the entire value of the loan in two installments, according to the company's disclosure to the DFM on Thursday.

The company will repay the first installment at a total value of KWD 3 million within two weeks from 15 September 2020, while the second installment worth KWD 3 million will be paid off in December 2020.

After completing the settlement expected in the fourth quarter (Q4) of 2020, profits of KWD 18.98 million will be deducted as per the signed contract.

Hence, the financial impact will be registered in the Q4-20.

It is noteworthy to mention that in April, the company announced accumulated losses of KWD 15.185 million, representing 56.93% of the capital ratio.