The Central Bank of Kuwait prohibits the sale of pledged collateral

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Today, Sunday, the Central Bank of Kuwait prevented banks, investment companies and finance companies subject to its control from selling its collateral against loans and financing granted.

The Central Bank, in a circular in this regard, said that the step comes as a precautionary measure to counter the effects of the Corona virus on the economic and banking conditions in the country, with the aim of maintaining financial stability.

He continued, “It is necessary to refrain from selling or restricting collateralized collateral against loans and financing operations offered to customers until markets stabilize and economic conditions improve. As for the client’s request, guarantees can be sold with providing the central bank with clear details of the sales operations.”

He explained that the procedure aims to reduce the effects of “Corona” on local market conditions, and the requirements that this requires in terms of customer conditions, and banks and entities subject to “Central” control must deal with customers by positively looking at their circumstances when needed to request additional guarantees.

Kuwait announced, this morning, the registration of 8 new cases of “Corona”; bringing the number of injuries to 112.

And the Kuwaiti government imposed, last Wednesday, an official holiday in the country from March 12 to March 26, as part of the precautionary measures to confront the “Corona” outbreak, with the suspension of all commercial flights to the country except shipping.

On March 11th, the World Health Organization classified the “pandemic”, a scientific term more severe and widespread than the “global epidemic”, symbolizing the international spread of the virus and not being confined to one country.

As of Sunday, Corona had infected about 158,000 people in 155 countries and territories, of whom nearly 5,850 had died, most of them in China, South Korea, Italy and Iran.

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