Kuwait extends loan repayment deadline for SMEs

The Council of Ministers has taken a significant step to support entrepreneurs, particularly those funded by the National Fund for Small and Medium Enterprises, especially those who may be facing financial challenges.

In response to a proposal put forth by the Minister of Trade and Industry and the Minister of State for Youth Affairs, Muhammad Al-Aiban, the Council of Ministers has approved a 6-month postponement for loan installments owed by entrepreneurs who own small and medium enterprises financed by the National Fund.

This decision has been met with positive feedback, with Representative Abdul Wahab Al-Issa expressing that it aligns with the demands presented by the Committee for Improving the Business and Small Enterprise Environment.

Informed sources have revealed that the postponement will benefit between 700 to 800 borrowers, out of the 990 entrepreneurs who received loans from the National Fund for Small and Medium Enterprises to kick-start their projects. Some entrepreneurs had faced difficulties in meeting their repayment schedules, largely due to having signed borrowing contracts with the fund before the onset of the COVID-19 pandemic.

Representative Jarrah Al-Fawzan has described this postponement as a well-deserved and necessary step, emphasizing the need for the government to comprehensively address the Small Enterprise Fund, including tackling previous issues and holding accountable those who may have been negligent.