Abu Dhabi: The Kuwaiti government will stand guarantor for up to 80 per cent of funding provided to those businesses affected by the COVID-19 outbreak, without calling interest of returns. The package totals 3 billion dinars.
This is as per the draft law put together by the fatwa and legislative department at the Ministry of Justice. It also features some changes to the bill proposed by the High Steering Committee for Economic Stimulus.
A local bank determines the amount of financing based on the customer’s credit conditions. It will need to cover the deficit in cashflows for contractual obligations, provided that financing granted to the small and medium sized entities does not exceed 250,000 dinars.
Clients who default between the date of the loan request and December 31 will not be able to benefit from this relief package. Under the bill, offenders will face jail terms of between two and five years, a fine of 10,000 dinars or both.
In the event that the client falters for 90 days, the state will cease to bear the costs from the date of non-compliance, according to the draft law, expected to be discussed by the Cabinet next week.
