KUWAIT CITY, Nov 16: Gulf Insurance Group Company announced in a disclosure to the Boursa Kuwait Thursday that it had received notifications from two local banks regarding the Ministry of Health’s request to extend letters of guarantee totaling 47.7 million Kuwaiti dinars for the terminated “Afia 3” contract, reports Al-Seyassah daily.

The contract was officially ended by the Ministry in September 2024. The company confirmed extending three letters of guarantee -- 22.32 million dinars through the National Bank of Kuwait, valid for three years from its expiration date on December 31, 2024; 3.38 million dinars through the National Bank of Kuwait, valid for one year and 22 million dinars through Burgan Bank, valid for one year and expire at the end of 2024. The GIG has emphasized in its disclosure that it is currently unable to determine the financial impact of the extension due to unresolved issues surrounding the contract’s termination.

Economic expert Mohamed Ramadan told Al-Seyassah that the Ministry of Health’s request to extend the letters of guarantee underscores 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 settlement discussions, leading the company to assert its inability to assess the financial implications of the extension until an actual resolution is achieved. The development leaves the financial ramifications of the “Afia 3” contract termination uncertain, signaling ongoing negotiations between the parties involved.