Kuwait lawmakers call on government to pay six months rent
A Kuwaiti parliamentary panel has submitted a motion to the Cabinet to open up the largest number of businesses with firm health controls, offering non-refundable grants of no more than 10,000 dinars ($32,500) for each small and medium enterprise (SME).
The lawmakers also proposed the state guarantee to pay rents of six months and 80 per cent of salaries as of July 1. They also proposed to facilitate banking procedures and extend payment periods, covering all projects, including non-performing ones, and motivating large companies through certain facilities in exchange for using the services of small and medium companies.
The Parliamentary Committee on business environment improvement has received a preliminary approval from chairman of the Higher Committee for Economic Stimulation Dr. Mohamed Al Hashil of the contents of their working paper to support private sector projects during the COVID-19 crisis.
Sources said that Al Hashil expressed his initial approval to discuss the paper, and include it in his recommendations to the Cabinet.
The package includes bills concerning public debt and bankruptcy designed to help companies through the current economic turmoil and save the jobs of 73,000 Kuwaitis in the private sector.
Kuwait has passed a $5.2 billion economic stimulus package after a dissolution of its fractious parliament allowed the government to implement the bill unopposed.
The stimulus package does not increase spending on infrastructure but offers bank guarantees on loans and allows the government to buy unsubscribed shares in banks’ capital raising.
Despite its vast oil reserves and $200bn sovereign wealth fund, Kuwait has been one of the Gulf countries most severely affected by the financial crisis. A large number of Kuwaiti investment companies are struggling after highly leveraged bets on liquid assets such as private equity vehicles and property.
Global Investment House, a large investment bank, has already defaulted on its debt, and Gulf Bank, one of the country’s largest lenders, had to be recapitalized by the government after it almost collapsed on a currency derivatives trade that went awry.
Kuwait health authorities have detected 846 new confirmed cases of Covid-19 in the country, according to health officials. Health Ministry spokesperson Dr. Abdullah Al-Sanad as saying that Kuwait’s total number of cases now stands at 41,879.
All the new cases were in contact with previously infected people or are being investigated for sources of infection, the Health Ministry’s spokesman Dr. Abdullah Al Sanad said. Additionally, four more deaths stemming from the virus were reported. Kuwait’s total Covid-19 death toll now stands at 334.
In the last 24 hours, 505 people recovered from the coronavirus (COVID-19), bringing the tally to 32,809. The recovered will be transferred to the hospital recuperation ward, pending their discharge within the next few days.
Kuwait Extended First Phase of the plan to gradually return to normal life. Kuwait Cabinet decides to lift isolation from Hawally, Nugra, Maidan Hawally & Khaitan areas starting from 5 AM on Sunday, Jun 21. Isolation areas of Mahboula, Jleeb, Farwaniya continue until further notice. The curfew will be from 7 PM to 5 AM, starting Sunday 21 Jun.
Since the coronavirus emerged in China late last year and spread worldwide, more than 9.2 million people have contracted it, according to Johns Hopkins. The university has tallied more than 477,000 deaths from the disease it causes, COVID-19.