Lawmakers Pass Bill To Support Banks In Backing Of Covid-affected Clients

The National Assembly approved on Wednesday a bill to support and ensure local banks’ financing of customers affected by the repercussions of the coronavirus pandemic. The move, which aims to “reduce the risks of indirect effects as a result of the interlocking of economic sectors,” was approved by the parliament at an extraordinary session in its first deliberation.

The bill saw 26 lawmakers voting in favour along with 20 in rejection, out of the 46 in attendance. The explanatory memorandum of the draft law mentions that “the situation requires encouraging banks to provide the necessary financing to affected individuals and companies, to prevent the occasional shortage of liquidity from turning into a chronic and prolonged problem that affects their financial solvency, so that this transfer helps them to overcome the crisis and preserve national employment.”

The memo added that the law will also “work to support the capabilities of local banks to play their pivotal role in supporting and maintaining economic activity under these circumstances.”

 

Source: kuwaitofferings

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