KUWAIT CITY, Nov 16: Gulf Insurance Group Company announced in a communication to the Kuwait Stock Exchange on Thursday that it has received notifications from two local banks regarding the Ministry of Health’s request to extend the letters of guarantee by an amount total of 47.7 million Kuwaiti dinars for the completed “Afia 3” project. “Contract”, reports the daily Al-Seyassah.

The contract was officially terminated by the ministry in September 2024. The company confirmed the extension of three letters of guarantee: 22.32 million dinars through the National Bank of Kuwait, valid for three years from its expiration date December 31, 2024; 3.38 million dinars via the National Bank of Kuwait, valid for one year and 22 million dinars via the Burgan Bank, valid for one year and expiring at the end of 2024. The GIG stressed in its communication that it is currently not in able to determine the financial amount. impact of extension due to unresolved issues regarding contract termination.

Economic expert Mohamed Ramadan told Al-Seyassah that the Health Ministry’s request to extend the letters of guarantee highlights that a financial settlement between the ministry and the company remains incomplete. Ramadan noted the possibility of the ministry seeking financial compensation from Gulf Insurance as part of the contract termination process. He added that the disclosure highlights the pending nature of the settlement discussions, leading the company to assert its inability to assess the financial implications of the extension until an actual resolution is reached. This development leaves the financial ramifications of the termination of the “Afia 3” contract uncertain, signaling continued negotiations between the parties involved.