Summary of the announced measures
Announced 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
[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
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