Tue, Jun 09, 2020
News Summary Report
EXTERNAL AFFAIRS
Kuwait Amir Receives Letter from Sultan of Oman
Kuwaiti Foreign Minister Sheikh Dr. Ahmad Nasser Al-Mohmmad Al-Sabah on Monday received a letter addressed to His Highness the Amir Sheikh Sabah Al- Ahmad Al-Jaber Al-Sabah from Sultan of Oman Haitham bin Tareq.
The letter is related to close and deep relations between both sisterly nations, bilateral cooperation in various domains and issues of mutual concern.
The Kuwaiti foreign minister received the letter while welcoming Charge d’Affaires of the Omani Embassy in Kuwait Hilal bin Ali Al-Shanfari.
Assistant Foreign Minister for GCC Affairs Ambassador Nasser Haji Al-Muzain, Assistant Foreign Minister for the Foreign Minister’s Office Affairs Ambassador Saleh Slem Al-Lughani and several other senior officials of the Ministry of Foreign Affairs attended the meeting.
Arab Times
Return of 62 Advisors from Egypt Important – Work Held Up
Head of the Court of Appeals, Counsellor Mohammad bin Naji stressed the need for the Ministry of Justice to find solutions to enable 62 advisors who are struck in Egypt to return to the country at their own expense.
In a press statement, he explained that 29 of these advisors work for the appellate circles and 15 in cassation circles. The rest are distributed among the various judicial bodies.
Their return is important for the resumption of work in the courts. The advisors of the Court of Appeals are from at least 25 departments in the court. Some of them work in other departments to issue rulings. Their stay in Egypt is unjustified, especially since they wish to return to the country to complete their work.
Regarding denial of access to the courts for attorneys’ representatives and the need for prior electronic reservations to enter, Counselor Naji stated that the Supreme Judicial Council mandated the Ministry of Justice to create a portal to
implement that decision, which was issued by the health authorities, until work resumes fully in all courts.
He stressed that the decision aims at implementing the health requirements such as social distancing and avoiding gatherings, highlighting that the appellate courts are restricted from looking into more than six cases per day in order to prevent crowds and gathering inside the halls.
Counsellor Naji indicated that the criminal judicial departments in the appellate circles have resumed work, and the rest of the departments will be joining them from July 1, adding that the notification departments will undertake procedures for the cases that will be considered in July.
Arab Times
ECONOMY
Saudi, Kuwait and UAE Will Not Extend Voluntary Oil Production Drop After June
Saudi energy minister, Abdul Aziz Ben Salman confirmed that voluntary drop of oil production is for one month only, and it has achieved the desired aim, and will help restore stability in the markets.
4 sources have informed Reuters that GCC producers at OPEC, Saudi Arabia, Kuwait and the UAE don’t have intention to resume their additional voluntary oil production drop that reaches 1.180 million barrels/ a day after June.
Oil prices were up during yesterday’s transactions after big producers agreed to extend an unprecedented production drop till the end of July.
Brent Crude price was up 51 cents, equivalent to 1.2% to reach $ 42.81 pb, whereas WTI rose 32 cents or 0.8% to $ 39.87 pb.
Al-Anbaa
COVID-19 to Plunge Global Economy into Worst Recession Since WWII:
WBG
The swift and massive shock of the coronavirus pandemic and shutdown measures to contain it have plunged the global economy into a severe contraction, announced the World Bank on Monday.
“The global economy will shrink by 5.2% this year. That would represent the deepest recession since the Second World War, with the largest fraction of economies experiencing declines in per capita output since 1870”, the World Bank says in its June 2020 Global Economic Prospects.
Economic activity among advanced economies is anticipated to shrink 7% in 2020 as domestic demand and supply, trade, and finance have been severely disrupted.
“Emerging market and developing economies (EMDEs) are expected to shrink by 2.5% this year, their first contraction as a group in at least sixty years. Per capita incomes are expected to decline by 3.6%, which will tip millions of people into extreme poverty this year”, reads the WB report.
It noted that the blow is hitting hardest in countries, where the pandemic has been the most severe, and where there is heavy reliance on global trade, tourism, commodity exports, and external financing.
While the magnitude of disruption will vary from region to region, all EMEs have vulnerabilities that are magnified by external shocks.
Moreover, the WB pointed out that interruptions in schooling and primary healthcare access are likely to have lasting impacts on human capital development.
KUNA
CBK Issues Bonds and Tawaruq Worth KD 280 Million
The Central Bank of Kuwait announced at a press statement yesterday that it will dedicate the latest issue of CBK bonds and tawaruq with a total value of KD 280 million.
According to the statement of the CBK, the issue term reaches 6 months with a revenue rate of 1.375%.
Al-Anbaa
6 Months Exemption from Rents During Emergencies
MPs Ahmad Al-Fadhl, Safaa Al-Hashem, Nasser Al-Dossari, Khalaf Demether and Khaled Al-Shatti submitted a bill regarding amendment of the conditions of lease contracts during emergency conditions and its articles are as follows:
Article One: Emergency conditions are defined, subject to the provisions of this law, as natural disasters, wars, spread of epidemics or economic disasters in which the Cabinet takes procedures that suspend use or benefit of the premises that is invested for commercial or industrial or any economic or professional investment activities or any utilities that are affected by those decisions.
Article Two: the lease of the invested premises shall not be counted all during the six months since the occurrence of results of the emergency conditions as
stipulated in Article One, and the lease shall be discounted by 60% for the successive 6 months.
And in all cases, the lessor shall not oblige the lessee to evacuate the leased premises after the occurrence of the emergency conditions and all during the whole year of exemption and discounted lease fees. This also applies if the consequential results of the emergency conditions last for a longer time that makes it impossible to benefit from the leased premises based on decisions from the Cabinet.
In case the lease is paid or the investor is committed to pay it during the emergency conditions, then he will be compensated with a similar free period.
Article Three: This law is applicable on each investor with natural or legal persons or state possessions contracts, whether with the Ministry of Finance or any of the independent or annexed ministry, authority or organization or wholly state owned companies or companies where the government owns more than 51%
if the contracts are connected with other investors, who represent a third party and who benefit from the leased premises and are subject to the provisions of this law, and the contract allows them to lease to other parties, provided that the investor is not in default in payment of due leases prior to the emergency conditions.
Article Four:
A department shall be established in the plenary court that specializes in requests for reducing the leases due to the failure of the invested business and its suspension due to the consequences of the emergency conditions referred to in accordance with the first article of this law. Verdicts may be appealed, and this does not preclude the contractor's obligation to pay the due lease value until the verdict becomes final.
The court is not competent in contracts concluded to benefit from state possessions.
Article Five:
No text in any other law shall have any effect in suspending the provisions of this law.
Article Sixth:
The Prime Minister and Ministers – each in his capacity – shall put this bill into force and it shall be enforceable on the date of its publication in the formal gazette.
Al-Anbaa
Kuwait Economy Will Contract by 5.4% During 2020: The WBG
The World Bank Group (WBG) expects that Kuwait economy will contract by 5.4% during the year 2020, and then it will grow slightly with a rate of 1.1%
during 2021. These expectations are made amid the novel COVID-19 pandemic, which has negative consequences on the global and local economy due to closure measures that have been adopted to contain the virus, and which have plunged the global economy into severe contraction.
“Expectations of Kuwaiti economic growth have significantly improved from expectations of last January, as it was expected that the Kuwaiti economy will drop by 7.6% during 2020 and contraction will continue during the coming year 2021 by 0.9%, however, the World Bank changed its outlook to improvement of the Kuwaiti economy by the next year”, said the report of the group titled, “Global Economic Prospects”.
The report states that the percentage of expected contraction for the present year for Kuwait economy is conforming to the negative consequences of COVID-19 in comparison to 2017 contraction, which witnesses serious plunge in oil prices as it recorded a contraction of 4.7% and then it grows by 1.2% in 2018.
According to the expectations of the WBG for the expected contraction rates for the GCC Countries, the Kuwaiti economy is the most expected one to witness contraction all over the GCC, followed by Bahrain and the UAE by a rate of 4.5%, then Oman 4%, Saudi Arabia 3.8% and finally the Qatari economy with a contraction rate of 4.5%.
Globally, the World Bank expects contraction of the global economy by 5.2% in 2020, and it confirmed the impact of COVID-19 pandemic was fast and enormous despite the unprecedented financial aids.
The WB considers that contraction will be the worst since the Second World War as it expects that extreme poverty will impact nearly 100 million persons due to COVID-19.
Al-Anbaa
The Chamber of Commerce is concerned about a solvency crisis
Chamber of Commerce and Industry confirmed that loans’ guarantee is a necessary and due decision, however, feasibility is in fast implementation and strong awareness of the health and economic challenges. It lauded all efforts exerted in the health and economic fields.
CCI emphasized in its statement in response to the Cabinet decisions, especially those related to loans’ guarantee that it should be acknowledged that Kuwait didn’t succeed till now to achieve a balance between due health measures and the necessary economic measures.
It added that it should also be acknowledged that implementation of the stimulating package approved by the Cabinet on March 31, and implementation of the basics, mechanisms and steps provided by the Supreme Council for economic stimulation on April 20 are characterized by unjustified sluggishness, which increased concern of the private sector impacted small, medium sized and large enterprises from transformation of the short-term liquidity shortage into a solvency crisis with all its associated costs and social as well as economic costs.
Further, the CCI indicated that minimizing budgets while there is no increase of the capital of independent entities, and reconsidering subsidies are brave decisions that deserve support.
Al-Rai
DOMESTIC AFFAIRS
Kuwaiti Cabinet Holds Weekly Meeting
The Cabinet held its weekly meeting on Monday chaired by His Highness the Prime Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah via teleconference.
His Highness the Prime Minister briefed the Cabinet on talks, he had attended, describing them as “ positive” with the National Assembly Speaker Marzouq Al- Ghanem and the Supreme Judicial Council Chairman Yusuf Al-Muttawa regarding the government’s Coronavirus measures.
Health Minister Sheikh Dr. Basel Al-Sabah then outlined the health situation in the country, including data and statistics related to COVID-19 cases, recoveries and fatalities.
He also highlighted precautionary measures taken by the Ministry of Health to reduce the spread of the virus, including the full lockdown described as having produced “ positive indicators”. The Cabinet expressed gratitude and appreciation for the commitment of nationals and residents alike to these measures.
Ministers also reviewed the most recent steps on the matter, namely the first stage of the plan to regain normality post-coronavirus, the partial ban and the full quarantine imposed on several areas.
Nationals and residents were urged to adhere to social distancing rules and to cover both the nose and mouth, working together as a team to prevent the spread of the virus in preparation for the transition to the next stage of the plan to return to normal life.
The Government also decided to equip and prepare both Seashell Julia Hotel and Resort and Al-Joun Resort as quarantine facilities for people who have begun to recover from the virus.
Furthermore, it approved setting up health ministry laboratory testing facilities at air and land ports.
The endeavor, which includes Kuwait International Airport and the new airport, will be administered in joint coordination among the Ministry of Health, Ministry
of Finance, Ministry of Interior, Ministry of Public Works and the Directorate General of Civil Aviation.
Separately, Minister of Oil and Minister of Electricity and Water Dr. Khaled Al- Fadhel briefed the ministers on his attendance of teleconferenced talks with OPEC Plus nations, during which the oil producers agreed to maintain current output levels through July.
The Cabinet also reviewed lawmakers Riyadh Al-Adsani’s application for a five- axis grilling of the Minister of Finance Barrak Al-Sheetan, which will be on the agenda of the upcoming National Assembly session.
The Cabinet underlined its acknowledgement that interpellations are a right guaranteed by the Constitution to every member of the National Assembly.
On regional and global affairs, the Cabinet expressed Kuwait’s welcoming of the Libyan ceasefire initiative, launched by Egypt’s President Abdelfattah Al-Sisi, in line with its support for the United Nations initiative on the matter, last March, calling for a ceasefire in all conflict areas amid efforts to limit the spread of COVID-19.
The Kuwaiti ministers expressed hope the recent initiative would contribute to initiating a political solution in a manner that preserves the unity and independence of Libya.
KUNA
Kuwait Announces 1,037 COVID-19 Recoveries, Raisin Total to 21,242 Some 1,037 people recovered from the Coronavirus (COVID-19) in Kuwait, bringing the total to 21,242, the health ministry said Monday.
The recoveries will be discharged from hospital within the next few days after laboratory and radiological tests confirmed they were cured.
KUNA
Sources:
KUNA: http://www.kuna.net.kw/Default.aspx?language=en
Al Rai: http://www.alraimedia.com/
Kuwait Times: http:/36Y5/www.news.kuwaittimes.net/website/
Arab Times: http://www.arabtimesonline.com/news/
MEED: http://www.meed.com/
Al Anbaa: http://www.alanba.com.kw/newspaper
Al-Seyassa : http://al-seyassah.com/
Al-Anbaa: https://www.alanba.com.kw/newspaper/
77777 Al-Jareeda: http://www.aljarida.com/
