IT is not the time for leisure or to grab opportunities at the expense of tens of thousands of people.
The crisis is huge, and so far, there are no indications of an end to it in the near future. As long as the COVID-19 is continues to sweep across the world, everyone is required to join hands and work with a community spirit, as well as overcome the urge for selfishness and opportunism.
Undoubtedly, the impact of this epidemic is not limited in Kuwait to this day. No one knows how long the outbreak will continue, what it can entail, and what must be done about it, especially since its negative effects on the national economy are beginning to emerge.
Therefore, there are measures that have become imperative to take, especially after the economic movement in the country suffered a major setback, and its negative repercussions have reached everyone especially those with limited incomes.
Those earning limited incomes are mostly borrowers. They do not have enough spare to face an emergency crises, and any imbalances in their budgets can lead to major problems.
Therefore, in this emergency situation, these people need help, and their burdens must be lifted. The least that can be done quickly is to delay the repayment of the installments of their loans, given that the payment crisis has started to emerge due to the current emergency situation. This necessitates the implementation of Article 25 of the Constitution, which stipulates that “The State shall ensure the solidarity of society in shouldering burdens resulting from public disasters and calamities, and provide compensation for war damages or injuries received by any person as a result of the discharge of his military duties.”
Therefore, the minimum step that can be taken in this regard is postpone the collection of installments and debts from the borrowers, and reschedule the loans of individuals and institutions in order to avoid any crisis that will arise in the event that the banks continue to take the legal measures that are usually taken under normal circumstances, at a time when the outbreak of the virus is worsening.
This issue depends on the Central Bank of Kuwait, which must take into consideration all measures related to the emergency conditions, and lift the burdens of individuals and companies due to the economic downturn. This is necessary to avoid the crisis from becoming a financial and social disaster later.
Under normal circumstances, the banks have the right to take measures they deem legally appropriate against the defaulters. However, during times of crises especially those mentioned in the Constitution, the state must implement the constitutional article and ensure “the solidarity of society in shouldering the burdens resulting from public disasters and calamities”. This can be implemented through flexible and facilitated procedures. In many cases, people will be compensated for what they have lost.
Kuwait will not be the only country to take such kind of measures, as many countries have supported their economies with tens of billions of dollars, and have taken necessary steps to help their people overcome the crisis.
By Ahmed Al-Jarallah
Editor-in-Chief, the Arab Times
