Al-Shaya: Housing projects were not affected by the budget deficit

  • “Credit”: Yes, we asked to increase our capital … Our ability to borrow is limited

Kuwait City, April 23: Minister of State for Municipal Affairs and Minister of State for Housing and Urban Development, Shaya Al-Shaya, confirmed that housing projects and the contracts concluded in their regard and being implemented were not affected by the government’s announcement of the budget deficit.

Al-Shaya said, in response to a question by Dr. Abdul Karim Al-Kandari, of whom Al-Jarida obtained a copy: The Saad Al-Abdullah South City project, in accordance with the Public Authority for Housing Welfare plan for the fiscal year 2021/2022, will start implementing the works of its infrastructure and main roads, as the road design works and the services of this infrastructure have been completed. And the preparation of the tender documents for them, indicating that the approvals and approvals of the concerned authorities are currently being obtained for the service plans of this structure, as well as following up the implementation of the concerned authorities for the timetables to remove the remaining obstacles on the project land.

Also Read: Kuwait Planning to open the airport on the first of July

Advertisement

On the South Sabah Al-Ahmad project, Al-Shaya said that the implementation of its infrastructure and main roads will be started, and approvals and approvals of the concerned authorities are being obtained for the detailed design plans for the road networks and services of this infrastructure.

The minister attached his answer to the credit bank’s response regarding the latter’s submission of a request for borrowing or a request to increase its capital due to its lack of financial solvency, in which it was stated: “Yes, we have requested an increase in the capital. Taken in its meeting No. (51/2020) on 10/8/2020, in which the Board was informed of the Ministry of Finance’s statement regarding its request to increase its capital, in which it concluded the need to restructure the housing plan in line with the state’s ability to finance and implement, and the speedy passage of the mortgage law Real estate, and the real estate developer system in order to increase the private sector’s contribution to financing housing projects, and to reduce the burden on the public sector.

“As for borrowing, the bank’s ability to do so is limited, because in light of the current negative cash flows, it will not be able to repay the debt service and its principal,” added “credit” in his response to another part of the question.

Source: Al-Jarida

Adil Khan

Adil Khan writes about Kuwait National News for Mykuwaits, out of Kuwait. Adil Khan is a senior reporter for Mykuwaits.com and has frequently written about the latest developments in the State of Kuwait. Adil Khan is available on Facebook at the below link, Please send in your leads and tips.
View All Articles
%d bloggers like this: