Contractors owed about KD 4 billion by Kuwait Government

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KUWAIT CITY, Aug 7: According to informed sources, the pending payments by the government to contractors and companies contracting with ministries and government agencies is approximately KD 4 billion. The value of these claims is likely to rise to about KD 5 billion at the end of 2021. This constitutes 21.7 percent of the total expenses of the current fiscal year, which is estimated at KD 23.048 billion, reports Al-Rai daily. The sources explained that those affected by the delay in government payments, whose circle expands to include a long list of names of operational entities, some of which won government contracts about two years ago, have prepared a preliminary inventory.

In this, they showed that there are contractual payments they were due to receive from ministries and government agencies from 18 months ago. These outstanding amounts include direct contractual payments, specific facilities, and bidding payments. Banks do not seem far from the risks of delaying the payments to contractors and companies, as they noted their association with approximately KD 1.5 billion, from the partnership arrears. These amounts are not necessarily classified as loans, but entail banking classifications with the implementers in the form of finances, credits, transfers and sureties and other services provided by banks to companies and contractors winning government projects.

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