Local Arabic news paper Alqabas reported that The National Assembly’s approval of a request to urgently postpone loan installments for another six months, government sources revealed their rejection of parliamentary proposals to postpone loan installments for an additional 6 months, considering that what is being marketed is nothing but gaining, aiming to tickle the feelings of citizens for electoral purposes at the expense of The state budget, which suffers a crushing deficit crisis.
The sources indicated that the government-bank agreed to reject these proposals, because of their severe damage that may befall banks, harm the interests of shareholders and depositors, and without tangible benefit for borrowers, noting that there are other solutions that banks can help defaulters. Foremost among them is the rescheduling of their loans. She pointed out that the government had received initial indications from banks indicating that they could not bear the cost of any upcoming decision to postpone installments.
For its part, banking sources said that the banks have fulfilled their duty towards society by bearing the cost of their decision at the beginning of the crisis to postpone the payment of loan installments for a period of 6 months, which incurred losses that exceeded 370 million dinars, which will be reflected in their budgets for the next 4 years. The sources indicated that the conditions of banks when they first postponed loan installments for the first time are not the same now, especially since the major economic repercussions of the Corona crisis on banks have not yet been revealed, and the health crisis itself is still unclear.
The sources stated that banks represent the backbone of the Kuwaiti economy and the largest employer of citizens in the private sector, and harming them harms the financial sector and reduces their ability to provide new job opportunities.