The government began drawing scenarios to compensate business owners affected by the recent decisions to close some economic activities, coinciding with the committee for improving the parliamentary business environment calling for a meeting to be held tomorrow (Thursday) to move the wheel of compensation for owners of small and medium enterprises.
Al-Qabas learned, from reliable sources, that the government is studying compensation for the affected business owners, indicating that the proposals on the study table include disbursing some money to business owners whose activities are suspended, equal to the value of the monthly rent in addition to the salaries of workers according to the records of the Manpower Authority, for the current closing period Only, which is one month old, with strict not to pay any retroactive compensation for the previous months.
The sources pointed out that the “strongest voice” in the cabinet tends to direct financial support, given that the business owners whose activities are closed, most of them are citizens who are restricted to Chapter Five, and they have no source of income except for their small and medium enterprises.
She explained that the final features of the government decision will become clear in the coming period after consulting the legal opinion by the Fatwa and Legislation Department.
In addition, responsible sources confirmed that the decision to suspend some economic activities will be subject to review two weeks after its implementation.
Parliament, the Business Environment Improvement Committee begins studying a package of proposals aimed at compensating affected small and medium-sized enterprises owners, in preparation for their approval and submission, to be included on the National Assembly’s agenda.
The committee will consider, in its meeting scheduled for tomorrow (Thursday), the proposal submitted by MP Khalil Al-Saleh, regarding the need for the government to assume its constitutional responsibility, and the results of its decisions, by providing financial support to the owners of these projects, as a result of the great harm that befell them.
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Al-Qabas learned from reliable sources that the government is studying compensation for business owners who have been affected by the suspension of some economic activities as a result of recent decisions, which included the total closure of some sectors.
The sources indicated that among the proposals under consideration is the disbursement of sums of money in compensation for the affected business owners, whose activities have been suspended, equal to the value of the monthly rent in addition to the salaries of workers according to the records of the Manpower Authority, for the current closing period of one month, with strictness Not to pay any compensation retroactively for the previous months. The sources indicated that the “strongest voice” in the Council of Ministers tends to pay material compensation, given that the owners of businesses that have closed their activities, most of them are citizens who are restricted to Chapter Five and have no source of income except for their small and medium enterprises.
She pointed out that the final features and implementation frameworks will become clear during the coming period, after clarifying the legal opinion from the Fatwa Department and the legislation in this regard, indicating that the government compensation option may be a direction to establish a general framework in the future to compensate business owners under any compelling circumstances.
Relatedly, responsible sources confirmed that the decision to suspend some economic activities will be subject to review after two weeks of its implementation, after which a decisive decision will be taken in this regard, whether by extending the closure or being satisfied with the period previously decided by the government.
The future economic situation is closely linked with the health situation in the country, and the daily numbers recorded in the numbers of injuries, deaths, and intensive care room occupancy.
The issue of the owners of small and medium enterprises affected by the closure of their activities has received remarkable support from all political, social and economic spectrums of society, as the Kuwait Chamber of Commerce and Industry warned that this serious crisis that enterprises suffer in its comprehensive sense, will be a major reason to thwart efforts aimed at localizing workers in The private sector, and will support and enhance the trend of Kuwaiti youth towards warmth and stability in government and public sector work, with all that this implies in terms of high societal and national costs, and heavy additional burdens on the onerous public budget, which are costs that are many times what small and medium enterprises need today in terms of support due to steadfastness in The face of the current and worsening crisis.
The head of the “Chamber”, Muhammad Jassim Al-Saqr, confirmed during his meeting with representatives of small and medium enterprises that the decision was absent in most cases, and he was a minor late if he attended, indicating that the failure is not related to supporting small and medium enterprises only, but withdraws – unfortunately – On Kuwait’s management of the economic repercussions of the Corona pandemic in general.
After the Cabinet’s decision on closing some commercial activities entered into force last Sunday, the Business Environment Improvement Committee will study a package of proposals aimed at compensating the affected owners of small and medium-sized enterprises, in preparation for approval and submission to be included on the National Assembly agenda.
The committee will consider, in its scheduled meeting tomorrow, Thursday, the proposal submitted by MP Khalil Al-Saleh, regarding the need for the government to shoulder its constitutional responsibility and the results of its decisions, by providing financial support to the owners of these projects as a result of the great harm that befell them.
The proposal identified 7 main demands, foremost of which is support for projects according to the size of the damage that was caused to them, amending the soft loan offered by banks and extending the payment period to 15 years with two years of grace, in addition to permitting the distribution of profits and withdrawals from the current account, as long as the business owner proves his ability to Paying the loan installment without default, in addition to transferring the amount in the company’s account in one go while giving the business owner the freedom to dispose of it according to what has been agreed upon with the company’s employees or the property owners.
The proposal also called for only applying the standards of small and medium enterprises and the conditions of the national registry, without requesting a certificate of registration in the national registry, with the postponement of the request for some documents that are difficult to obtain until the return to normal life in the state’s facilities and institutions and unifying the requests and procedures required by all banks, the loan ceiling was raised to 400,000 dinars.
MP Khalil Al-Saleh stressed that the owners of small and medium enterprises have been severely damaged since the beginning of the Corona pandemic, which was reflected in the survival of national projects and employment in the private sector.
Al-Saleh said to Al-Qabas: We hope the Business Environment Improvement Committee urgently approves the proposal to compensate entrepreneurs, especially since statistics confirm that about 80 percent of small and medium-sized companies are unable to cover their fixed expenses for a period of 6 months, and some business owners suffer from financial deficit and default in paying off debt.