By Gavin Gibbon
Package to cover debt and bankruptcy issues for companies struggling through Covid-19 economic crisis
Kuwait’s government has adopted a rescue package aimed at curbing the economic impact of the coronavirus crisis.
The package includes bills concerning public debt and bankruptcy designed to help companies through the current economic turmoil and save the jobs of 73,000 Kuwaitis in the private sector.
Prime Minister Sheikh Sabah Al-Ahmad AlJaber Al-Sabah, said: “We should act to mitigate the expected negative effects on the economic situation, and the (pandemic) crisis that has shaken the world and impacted the economy heavily.”
He added: “We might not need the public debt law today but later. However, we need laws that precede it in order to lessen the damage caused by the health crisis.”
He said that while the emphasis for now was on the health situation – Kuwait has confirmed over 29,000 Covid-19 cases since the start of the pandemic and 230 deaths – there is also a focus on security and economic conditions, specifically for those currently under lockdown in Hawally, Maidan Hawally, Khaitan, Farwaniya, Mahboula and Jleeb Al-Shuyoukh.
He added that the Kuwait is now working on approving the rescue package "which will decrease the impact and pave way for the next government to focus on structure of population, corruption and unstable economic condition”.