Often, the local or the global crises occur repeatedly and considerably, such as “Al- Manakh” Great Recession during the eighties in Kuwait, and the global financial crisis that began in the American financial markets in 2008, but the current financial crisis is a global epidemic that has casted a heavy burden on the economic movement, activity and business as well.

This global pandamic of the Corona crisis made the financial crisis spread widely and profoundly in terms of impact, and globally in terms of expansion.

No country in the world could possibly ignore or neglect the COVID 19 pandemic, and thus the international economy entered a phase of slowdown and then contraction, and it seemed that the economic challenges posed by the Corona virus were no less threatening than the health challenges.

The State of Kuwait was greatly affected by the pandemic. The government had to impose a partial then total curfew, and imposed strict restrictions on business which has affected directly and negatively on the operational activity of the current business projects, as some of these projects have become unable to pay real estate rental fees or even pay workers’ wages.

Such these conditions may lead to a wide economic catastrophe if are not treated or resolved rapidly. The government should have intervened to support projects affected by the Corona crisis, just as it intervened to impose a curfew and restrictions on the commercial activities.

Even-though the state does not usually guarantee the financial risks, but what happened due to the Corona crisis has transformed from a financial crisis that stroke the private sector, to a direct impact which touched the state’s economy.

What is the type of financial bailout that Kuwaiti projects need?

The solution of the Corona crisis is not fulfilled only by providing direct financial support, but also by managing the financial gap formed by the difference between expenditures and revenues, which means, covering the financial deficit in the projects that the Corona crisis affected.

Therefore, the biggest challenge which faced the Kuwaiti legislator before issuing the financial bailout law was to identify the projects that deserve this exceptional financial support.

Governance of the Implementation Scope. Determining who deserves the financial bailout

Primarily, the legislator focused on “the small and medium enterprises”, which are suffering from the fragility of their financial position and also regarded as additional weight on the state budget due to the dependence of most of them in terms of equipment, establishment and incubation on the fund to support their projects on the other hand.

However, determining the projects that deserve financial support in this way is based on determining their financial size theoretically, rather than looking into the practical details of the support entitlement.

Therefore, the Law of bailing out these Projects (2/2021) had to strictly control the rules of its applying scope. These rules that prevent the exploitation of the languid state budget with undeserved support, or the deprivation of faltering projects of the support they deserve.

However, the main problem in determining the scope of Implementation was the accuracy of the specialized financial terms that constitute the starting point in the scope of the implementation of the financial bailout.

The terminological Governance of terms. Identifying those affected by the Corona crisis
The definition of the term “affected” in the Projects bailout Law is as follows:

“Small and medium clients, including startups owners who were operating with operational efficiency, and whose activity was partially or completely affected by the Corona Virus (COVID 19) crisis, which resulted in their inability to cover the required basic periodic contractual expenses” (Article 01).

Therefore, the affected people who are eligible to benefit from the financial bailout are: