Kuwait: COVID-19 Government Relief measures Kuwait: COVID-19 Government Relief measures Kuwait: COVID-19 Government Relief measures

Fiscal measures[1]

• Budget for ministries and government departments increased by KD 500 million for the fiscal year 2020/2021
• Monetary and liquidity stimulants
• Central Bank of Kuwait measures[2],[3]
  • Discount rate reduced to a historic low of 1.5 percent
  • Repo rates, overnight, one-week and one-month reduced to 1 percent, 1.25 percent, and 1.75 percent respectively
  • Capital adequacy ratio lowered from 13% to 10.5%
  • Risk weight for SMEs lowered from 75% to 25%
  • Limit of financing increased from 90% to 100%
  • Loan to Value (LTV) ratio to be increased for properties 
• Kuwait Banking Association[4] announced a moratorium period up to 6 months on bank loans including waiver of interest and charges (if any for postponement) for retail clients (citizens and expats) and SMEs
• Other measures 
  • Temporary fund[5] established to receive financial contributions from locals in support of the government’s efforts related to the outbreak
  • Limit for contactless payments increased to KD 25 from KD 10 and fees on point of sales devices and ATM withdrawals suspended for three months[6]

[1]https://www.kuna.net.kw/ArticleDetails.aspx?id=2879475&language=en

[2] https://www.cbk.gov.kw/en/cbk-news/announcements-and-press-releases/press-releases/2020/03/202003161122-cbk-cuts-its-discount-rate-by-1-from-250-to-150

[3] CBK announcement on Capital Adequacy Ratio and Eased Loan terms

[4] https://www.kuna.net.kw/ArticleDetails.aspx?id=2881126&language=en

[5] https://www.kuna.net.kw/ArticleDetails.aspx?id=2879475&language=en

[6] https://www.cbk.gov.kw/en/cbk-news/announcements-and-press-releases/press-releases/2020/03/202003121418-press-release-cbk-assures-smooth-and-safe-banking-operations