OPEN THE AIRPORT ... LET US LEAVE: MP AL-FADL
State loan guarantees-only, subcontracts SME support decision to bank discretion SMEs fund delays payback
KUWAIT CITY, Oct 13: MP Ahmed Al-Fadl strongly criticized the recent decisions issued by the Cabinet regarding coronavirus.
“The government burned the last card and lost whatever remains of the citizens’ trust through the issuance of such funny and strange decisions,” he stressed.
He wondered how the government could ask citizens to book an appointment to go to a restaurant or a coffee shop, inquiring about the reason behind such exaggeration and making citizens panic at this particular time.
He argued the number of coronavirus infections and those confined in hospitals remains stable, indicating this raises more questions on the aim of the government in pushing the society into the dark tunnel.
He added the number of deaths as of July 2020 is lower than in previous years according to a statistics conducted by his office, affirming his office is currently updating this statistical report.
He said the World Health Organization (WHO) recommends wearing mask only for patients, their visitors, healthcare providers and those showing coronavirus symptoms.
He called for reopening of the airport and allowing citizens to leave this country that the government has turned into hell.
Meanwhile, Chairperson of parliamentary Financial and Economic Affairs Committee MP Safa Al-Hashem confirmed that the committee met with Finance Minister Barrak Al-Shitan, Central Bank of Kuwait Director Muhammad Al-Hashel and Kuwait Investment Authority Director Farouq Bastaki to discuss the amendments to the bill on supporting the economy due to the coronavirus crisis.
Al-Hashem refuted the allegation that only KD 500,000 is allocated for small and medium enterprises (SMEs), stressing this is not true.
She explained the bill is aimed at supporting the economy as a whole, pointing out the private sector constitutes 32 percent of the total income of Kuwait and this is divided into three percent for SMEs and 29 percent for other businesses.
She said the capital of some businesses is about KD 5 million and they are not small, medium or big as there are upper medium companies and these are the companies referred to as ‘other clients’ stipulated in the bill. She added the allocated amount – KD 3 billion – is not part of State money, clarifying this money is for the banks and the role of the State is to guarantee the loans.
She added the loans will be supervised by the Central Bank of Kuwait in order not to leave any gap for fake companies to obtain benefits illegally.
She said the loans will not be given in cash as the banks will directly pay for the financial commitments on behalf of the owners of companies.
She affirmed the bill stipulates two years grace period for SMEs to start the payment of loans and only one year for bigger companies.
In addition, member of the Financial and Economic Affairs Committee MP Saleh Ashour has unveiled his plan to vote against the proposal of the government to support businesses affected by coronavirus.
He confirmed attending the meeting between officials of various public institutions and Finance Minister Barrak Al-Shitan on Tuesday, indicating he reached the conclusion that the government’s bill is in favor of major businesses and provides too little for young entrepreneurs who own small and medium businesses.
Pointed
He pointed out the amount allocated for small and medium enterprises (SMEs) is KD 500,000 only, while the allocation for major businesses is KD 2.5 billion.
He said the National Fund for Small and Medium Enterprises – a subsidiary of the Ministry of Commerce and Industry – has KD 2 billion but it spent only KD 180 million so far. He asserted this fund has the ability to solve the problem and provide ample support for SMEs.
Also:
KUWAIT CITY: The Board of Directors of the National Fund for Small and Medium Enterprises (SMEs) Development has decided to defer the collection of the installments due on the projects financed by it for an additional 6 months starting from October, so that the total delay becomes 12 months, in a manner that the delay does not contradict the period stipulated in the law that established the fund, reports Al-Anba daily.
In this context, a responsible source told the daily that the decision taken by the Fund’s Board of Directors will benefit 815 projects and the number of Kuwaitis benefitting will be more than 2,000.
The fund stated in a press statement, that this step comes in view of the exceptional circumstances that the country is going through due to the outbreak of the new coronavirus, whose repercussions still affect the owners of SMEs, and an endeavor by the National Fund to support and care for the projects funded by it.
He added that the decision aims to reduce the financial obligations incumbent on the owners of SMEs.