By Staff writer
Adel Al-Majed has said the global crisis posed by coronavirus is worse than the financial meltdown of 2008
The Central Bank of Kuwait (CBK) has made almost $16.5 billion available for additional lending from local banks.
Chairman of Kuwait Banking Association (KBA) Adel Al-Majed said the stimulus package includes easing the conditions previously set by the CBK for financing the economic activities and small and medium-sized enterprises (SMEs), enabling local banks to help alleviate the impacts of coronavirus.
"It will enable the banks to exercise their vital role in the economic growth through financing the businesses and clients who are in need of liquidity to continue their activities and avert long-term problems due to the current challenging conditions," Al-Majed said in an interview with Kuwait News Agency (KUNA).
The protective policies being implemented by the CBK since the global financial meltdown of 2008, led to the building of a strong capital basis and substantial accumulative reserves. "Now, it is time to make use of these reserves," Al-Majed said, stressing that the global crisis posed by coronavirus is worse than the financial meltdown.
The package will help minimise the risks posed to the private sector by Covid-19 and will reduce requirements for banks to provide financing for SMEs from 75 percent to 25 percent.
Al-Majed added that it is also intended to boost the maximum lending limit and increase the maximum financing for residential real estate developments to the value of the property or the cost of development.