Kuwaiti banks have decided to deduct salary installments from salaries this month.
According to the details, the reduction in bank installments in Kuwait will start from October this month. No directive has been issued by the central or other banks so far regarding the extension of the repayment period of loan installments.
It is being said that if such an extension is made in the repayment of loan installments, it will double the deficit of the banks to 750 million Kuwaiti dinars, which will place an unbearable burden on the budgets of the banks.
Banks have already suffered greatly as businesses have been shut down by the government in the wake of the Karuna epidemic.
Banks can defer loan installments if the government bears the cost, but this is unlikely because the cost is too high, during the six-month period ending last month. The cost was about 380 million Kuwaiti dinars.
The Kuwaiti government is currently unable to bear the additional costs because it is facing a severe shortage of cash liquidity available for public spending, and the deficit has risen to historic highs.
It is also being said that the news of postponement of salary deductions by banks is just a rumor.
