Kuwait: There is no intention to further postpone the installments of citizens' loans

The term of validity of the provisions of Law No. 3 of 2021 regarding postponing consumer and installment loan installments for citizens for a period of 6 months, starting in April 2021, expires at the end of this September.

According to responsible sources for Al-Anbaa newspaper, the law will not be extended for an additional period, as banks and investment companies will start monthly deductions starting from next October's salaries. .

The sources said that Kuwait, as a contribution from it in alleviating the financial burdens and obligations on citizens as a result of the Corona pandemic, has postponed loan installments to citizens for a whole year, during which banks bore the costs of the postponement. The first time, which amounted to about 400 million dinars, while the second cost of 376 million dinars was borne by the state’s public treasury, i.e. a total of 776 million dinars.

In a question about the text of the law that it is permissible by a decision of the concerned authorities to extend the postponement of installments for another 6 months, the sources said: "There is no intention for an additional postponement."

The sources mentioned that deferring the installments is like extending the entire loan term for an additional year without charging the customer any additional fees or interest for the added period, and therefore there is no The effect of deferring installments on the interest rate of loans granted.

This, and the law stipulated in its fourth article that the funds necessary to implement the law be taken from the working treasury of the state.

The sources said that the total monthly installments of consumer loans and housing installments owed by citizens amounted to 197 million dinars, with a total of 12 billion dinars, excluding interests and returns, and the total balance Including interests and returns, which are due on loans until the end of their terms, about 15.1 billion dinars, and the difference of 3.1 billion dinars represents the total interest and returns on the mentioned balance of those loans.