On the instructions of Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Emir of the State of Kuwait, just a few steps ago, the Central Bank of Kuwait took new executive steps and measures to revive the Kuwaiti economy for fear of collapse, after the current crisis caused by the Corona virus and its impact on the economy in the State of Kuwait.
In the margins of that urgent meeting, the Central Bank of Kuwait took these villages in order to support the economy of the State of Kuwait, and the purpose is to assist banks, finance and finance leasing companies to overcome the repercussions of the crisis on the Kuwaiti economy.
According to what was monitored by “Al-Nasr newspaper” from a publication issued by the Central Bank in Kuwait that was circulated on social media, the Central Bank of Kuwait decided to take a package of incentive measures as follows:
1- The Central Bank of Kuwait requested all Kuwaiti banks to refrain from selling or executing mortgaged guarantees against loans and financing operations offered to clients, and this decision is excluded if the request for disposal is submitted by the customer in Kuwait.
2- First, reduce the basic interest rate and the discount rate by a quarter of a percentage point to 2.5% from 2.75% to boost growth in the Kuwaiti economy.
3- The average interest rate on this issue reached 2.5 percent, compared to 2.75 percent on the previous version.
4- All banks must, at the present time, respond to all requests to postpone the payment of installments and interest / profits of loans affected by the repercussions of the current situation in the State of Kuwait, especially small and medium enterprises, and that period is six months with immediate effect and that does not affect its credit rating.
5- Reducing overnight deposits from 2.00% to 1.50% in all Kuwaiti banks, and the interest rate on one-month deposits from 2.45% to 2.20%.
6- Lending facilities at 4.00% for all clients in Kuwait
7- All loans related to financing government projects in Kuwait for the year 2020 CE are allowed to be exempt from the credit rating, for a period of up to six months, in accordance with the instructions provided to the Central Bank of Kuwait in the circulars previously issued in that regard.
8- Generally consider reducing the fees imposed at the present time on all banking services in Kuwait and not adding any new fees during the current year 2020 AD until further notice.
9- Reducing the interest rate in Kuwait on government treasury bill deductions by 100 basis points to one percent.
10 - Reducing the interest rate in Kuwait on foreign exchange swaps by fifty basis points, and raising the maximum period for currency swap operations to six months.