Stimulus supports banks in recovery
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KUWAIT CITY, June 8: Number of economists and bankers, the amendment paper reviewed by the Central Bank Governor and Chairman of the Higher Steering Committee for Economic Stimulation Dr Muhammad Al-Hashil last weekend included flexible and more comprehensive amendments, and targeted the segment that deserves facilitated support, according to a smart financial structure that achieves the desired effect.
They assured that this paper has taken into account many dimensions and threw the ball of implementation in the stadium of the most professional banks that are ready to deal with this file based on their experiences, efficiency of their systems, and financial capabilities.
They indicated that this would involve banks in the process of reviving the economy and opening the financing appetite to reach KD 9 billion. CEO of the National Bank Group Issam Al-Saqer said he believes the recently revised stimulus plan “is positive with inclusion of incentives and motivating factors for all parties”, and that it will “give doses of oxygen to companies and segments benefiting from small and medium-sized companies”.
He stressed that the financing program was prepared in a manner compatible with the national economy. Al-Saqer explained that 80 percent of the beneficiaries of the program are companies that were operating efficiently prior to the COVID-19 crisis, but whose businesses and activities were negatively affected by the forced closure and suspension as they incurred losses due to rents, salaries and contractual benefits.
These companies need liquidity to breathe and return to life, and they can benefit from soft financing and can also be helped by scheduling the installments due on them. In this regard, Board Chairman of the Gulf Bank Jassem Mustafa Boodai stressed that the revised stimulus plan includes a number of positive dimensions such as expanding the area of beneficiaries and maximizing the impact, as banks stimulated financing through the governmental guarantee provided.
He said the revised stimulus program is generous and optimistic of achieving the desired goals. Furthermore, Deputy Chairman of Kuwait Finance House (KFH) Abdulaziz Al-Nafisi highlighted that the government, which has been exerting great efforts, has a fundamental role to play in this regard. He said he hoped the government will continue to amend the revival programs flexibly according to the repercussions and challenges imposed by the crisis, as this helps to give targeted companies strong motivation and opportunities for vitality.
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