In its monthly statistical bulletin for December 2019, as published on its website, the Central Bank of Kuwait (CBK) stated that the balance of total public debt instruments (including securities bonds and transactions since April 2016) has decreased by KD 1.470 billion compared to its balance in the end of December 2018, reaching KD 2.072 billion in the end of December 2019, 5.2% out of 2019 GDP which is estimated to be KD 39.9 billion (EIU estimates). The average interest rate (return) on treasury bonds for a one-year term was 3.000%, 3.125% for two years, 3.125% for three years, 3.250% for 5 years, 3.375% for 7 years, and 3.625% for 10 years. Local banks capture 100% of the total public debt instruments (100% in the end of December 2018).
The CBK bulletin states that total credit facilities for residents offered by local banks in the end of December 2019 scored KD 38.428 billion, about 54.1% of total local banks’ assets, rising by KD 1.574 billion indicating a growth rate by 4.3% over its level in December 2018. Total personal facilities scored KD 16.439 billion, or 42.8% out of total credit facilities (KD 15.821 billion in the end of December 2018) and rising by 3.9%.
Total value of installment loans was at KD 11.960 billion, or 72.8% of the total value of personal facilities. Share of facilities provided for the purchase of securities scored KD 2.634 billion, 16% of total personal facilities. Value of consumer loans amounted to KD 1.445 billion. Credit facilities to the real estate sector amounted to KD 8.918 billion or 23.2% of the total (KD 8.158 billion in the end of December 2018). This means that about two-thirds of the credit facilities went to personal and real estate facilities. Nearly KD 3.225 billion or 8.4% went to the trade sector (KD 3.316 billion in the end of December 2018), and KD 2.017 billion or 5.2% went to the industry sector (KD 1.981 billion in the end of December 2018), KD 1.980 billion or 5.2% went to the construction sector (KD 2.064 billion in the end of December 2018), and KD 1.180 billion or 3.1% went to the non-bank financial institutions (KD 1.082 billion in the end of December 2018).
The bulletin also indicates that total deposits at local banks were at KD 43.628 billion, representing 61.4% of total local banks liabilities, rising by KD 143 million above its amount in the end of December 2018, a growth rate of 0.3%, due to the increase in the public sector deposits by KD 755 million and the decrease in the private sector deposits by KD 612 million. About KD 36.240 billion -83.1%- belongs to clients of the private sector in its comprehensive definition including major institutions like the -Public Institution for Social Securities- does not include the government. About KD 33.708 billion were in Kuwaiti Dinars, 93% went to private sector clients and the equivalent of KD 2.532 billion was in foreign currency to private sector clients.
As for the average interest rate on customer deposits for a term, both in the Kuwaiti Dinar and the US Dollar, compared to the end of December 2018, the bulletin states that the difference in average interest rate is still in favor of the Kuwaiti Dinar in the end of the two periods, due to US Federal Reserve reducing the base rate 3 times, totaling 0.75 percentage points, compared to the Central Bank of Kuwait’s discount rate on the Kuwaiti Dinar once, about 0.25 percentage points during 2019. The difference was at 1.068 points for 1-month deposits, 1.009 points for 3 months, 1.029 points for 6-month deposits and 1.044 points for 12-month deposits. While that difference in the end of December 2018 was at 0.787 points for 1 month deposits, 0.658 points for 3-month deposits, 0.594 points for 6-month deposits and 0.530 points for 12-month deposits. The monthly average exchange rate for the Kuwaiti Dinar against the US Dollar in December 2019 scored 303.400 Kuwaiti Fils for each US Dollar, a drop by -0.1% compared with the monthly average for December 2018 when it scored 303.762 Fils per one US Dollar.