UPDATE 1-Kuwait pumps 300 million dinars in local bourse

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KUWAIT Jan 12 (Reuters) - Kuwait has pumped 300 million dinars ($1.06 billion) into the local bourse through a government fund aimed at stopping a slide in the Arab world's second-largest bourse amid the global financial crisis, the state news agency on Monday quoted the country's finance minister as saying.

This amount was enough "for the time being," Mustafa al-Shamali said according to KUNA. The government has launched a 1.5 billion dinar ($5.31 billion) investment fund to buy into the local bourse.

He said the government would not support firms in trouble through the fund. The Gulf Arab state last year rescued its fourth-largest lender, Gulf Bank (GBKK.KW), which had been hit by losses in derivatives.

Shamali also said Kuwait would reduce expenditures in the next fiscal year starting in April after predicting expenditures worth 19 billion dinars ($67.25 billion) for the current year. He gave no details. Oil revenues, Kuwait's main income, have been sharply falling on the back of retreating crude prices.

(Reporting by Ulf Laessing, Editing by Chizu Nomiyama Kuwait newsroom,+965 2460350)