Kuwait: Bank Loans for Those Affected by Coronavirus

Kuwait’s Central Bank Governor Mohammad al-Hashel. Reuters file photo

Bank loans will be provided for those affected by the coronavirus outbreak. This is with financing at a maximum 2.5% interest rate for three years, Kuwait’s Central Bank Governor; Mohammad al-Hashel has announced.

In a press statement on Tuesday; Hashel said this financing will be available for affected sectors, small and medium enterprises, individuals and companies.

The state will support companies in paying the interest for the first and second year of loans allocated to SMEs, the Governor noted. While the third year is to be shared equally between the enterprises and the state.

Regarding large enterprises; Hashel said the state will pay the interests for the first year only. While the second and third year shall be paid by the firms themselves.

The official pointed out that the state is facing a great challenge in light of the health crisis. This is to protect people’s lives while maintaining the economy intact.

There are 73,000 employees in the private sector that the state has been trying to maintain their livelihoods, he stressed.

The health crisis comes amid a significant and unprecedented collapse in oil prices, Hashel noted, adding that the estimates of losses exceed those borne by many countries since World War II.

The world economy needs three years to overcome the epidemic, the official concluded.