File photo: An aerial view shows Kuwait City after the country entered virtual lockdown, following the outbreak of coronavirus, in Kuwait City, Kuwait March 16, 2020. Picture taken with a drone. Reuters/Stephanie McGehee/File Photo
Kuwait: Governor of the Central Bank of Kuwait (CBK) Dr. Mohammad Al-Hashel on Thursday announced a stimulus package in a bid to mitigate the fallout of the novel coronavirus (COVID-19).
Al-Hashel, in a press statement, carried by Kuwait news agency (KUNA), said that the fresh package aims at reducing liquidity and capital adequacy requirements for banks, and cutting risk weighting for small and medium enterprises (SMEs) from 75 percent to 25 percent.
He added that they 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.
The CBK governor said that the stimulus package would back vital sectors and SMEs in their efforts to overcome the current circumstances amid the coronavirus pandemic.
He affirmed that the Kuwaiti banking system enjoys a strong position that reflects the financial safety indexes of banks in the country thanks to the CBK's discreet hedging policies.
He concluded by vowing that the CBK would closely monitor banks to ensure the latest package meets its intended purpose and would not hesitate to take further measures to meet the higher interest of the national economy.
