Development of SMEs need urgent support of KD 250 million
KUWAIT CITY, April 22: An unidentified consultant said the shortage of liquidity in the private sector which is affected by the corona crisis during 6 months will be approximately 6 billion dinars, or an average of one billion dinars per month report Al Qabas.
What this means is salaries, rents, payments to suppliers, to banks, and other fixed expenses that companies are almost unable to meet due to the economic closure. Therefore, the subsidized soft financing mechanism was put in place to prevent the liquidity crisis from turning into a solvency crisis.
The same sources emphasized that if the crisis lasts an additional 6 months, the cash deficit will reach more than 20 billion dinars, or about half of the economic output of the State of Kuwait.
Meanwhile, the National Fund for the Development of Small and Medium Enterprises needs urgent support of 250 million dinars to implement the mechanism announced by the Chairman of the Economic Stimulus Committee, Governor of the Central Bank of Kuwait Dr. Mohammad Al-Hashel after the cabinet meeting yesterday evening. Banking sources confirmed that the amount of concessional financing with symbolic benefits will be obtained by small projects affected by the corona crisis, and the new mechanism relies on banks to implement the decision.
Yesterday, a series of meetings were held between the Central Bank and bankers to launch the concessional financing, bearing in mind that the banks have launched electronic platforms in this regard and those wishing to finance must enter their data following which the files will be studied in line with the conditions announced by Dr. Al-Hashel