In major crises, especially wars, countries take measures to ease the burden on their citizens, particularly when it comes to monthly loan installments, due to the disruption of most sectors and the paralysis of businesses. Some countries provide financial support to the most vulnerable groups to prevent an increase in poverty rates after the war ends. During the recent war, the end of which is still uncertain, all sectors in the Gulf countries were affected. As a result, most governments in the region ordered a three-month suspension of loan repayments.
Bahrain was among the latest, with its Central Bank directing banks and finance companies to offer options to postpone loan installments and credit card payments, including both principal and interest, for individuals and companies for three months. This came as part of an economic support package, while continuing subsidies for certain groups and services. Such measures help individuals and businesses manage their affairs during sensitive times like these, especially as many activities have come to a standstill.
Due to the highly sensitive situation, some Gulf countries directed their social security funds to cover the salaries of citizens working in the private sector for three months, without deductions, after the war ended. In times of war, the focus is on ensuring social stability in all its aspects, as it forms the foundation for easing the burden on the state. When supply chains are disrupted, governments resort to drawing from strategic reserves. Likewise, when salaries are delayed, the state works to secure them through financial support for individuals and companies, sometimes in the form of non-refundable aid.
Kuwait is among the countries most affected by this war, despite the significant efforts made by security, military, and government institutions. To make the picture look perfect, it is necessary to adopt measures that strengthen social stability. There is an urgent need to ease the burden on citizens and companies whose operations have been severely affected by this war, the end of which remains uncertain. A compassionate approach is required to alleviate the suffering of the people. During this crisis, some supply chains have been disrupted, making it difficult to secure many goods, especially amid rising global inflation.
This situation is placing increasing pressure on household and individual budgets, leaving them in urgent need of support. Therefore, postponing loan and credit card payments, including installments and interest, for individuals and businesses for three months is a crucial step to address the current and future repercussions of the war. The burden on people is increasing, especially if monthly payments are not postponed.
We submit this matter to the attention of the government and His Highness the Prime Minister, hoping that directives will be issued to the Central Bank of Kuwait, which in turn could instruct banks and finance companies to postpone loan repayments for individuals and businesses for three months, following the example of other Gulf countries. This measure was implemented during the COVID-19 pandemic and had a significant positive impact on both the public and the economy, contributing to Kuwait’s recovery from the crisis and emerging from it even stronger