Financial and Monetary Statistics – March 2020

In its monthly statistical bulletin for March 2020 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 1.720 billion compared in the end of March 2018, reaching KD 1.672 billion in the end of March 2020, 5.2% out of 2020 GDP which is estimated to be KD 32.3 billion (EIU estimates). The average interest rate (return) on treasury bonds for a one-year term was 1.500%, 1.625% for 2 years, 1.750% for 3 years, 1.875% for 5 years, 2.000% for 7 years and 3.625% for 10 years. Local banks capture 100% of the total public debt instruments (100% in the end of March 2019).

The CBK bulletin states that total credit facilities for residents offered by local banks in the end of March 2020 scored KD 39.080 billion, about 53.7% of total local banks’ assets, rising by KD 1.659 billion indicating a growth rate by 4.4% over its level in March 2019. Total personal facilities scored KD 16.414 billion or 42% out of total credit facilities (KD 15.909 billion in the end of March 2019) and rising by 3.2%. 

Total value of installment loans was at KD 11.909 billion or 72.6% of the total value of personal facilities. Share of facilities provided for the purchase of securities scored KD 2.641 billion, 16.1% of total personal facilities. Value of consumer loans amounted to KD 1.474 billion. Credit facilities to the real estate sector amounted to KD 9.101 billion or 23.3% of the total (KD 8.314 billion in the end of March 2019). This means that about two-thirds of the credit facilities went to personal and real estate facilities. Nearly KD 3.472 billion or 8.9% went to the trade sector (KD 3.446 billion in the end of March 2019), and KD 2.075 billion or 5.3% went to the industry sector (KD 1.950 billion in the end of March 2019), KD 1.950 billion or 5% went to the construction sector (KD 2.096 billion in the end of March 2019), and KD 1.141 billion or 2.9% went to the non-bank financial institutions (KD 1.144 billion in the end of March 2019). 

The bulletin also indicates that total deposits at local banks were at KD 43.457 billion, representing 59.7% of total local banks liabilities, rising by KD 287.7 million above its amount in the end of March 2019 at a growth rate of 0.7%, due to the increase in the public sector deposits by KD 1.535 billion against a decrease in the private sector deposits by KD 1.247 billion. About KD 35.897 billion or 82.6% 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 33.512 billion were in Kuwaiti Dinars, 93.4% went to private sector clients and the equivalent of KD 2.385 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 March 2019, 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. The difference was at 0.821 points for 1-month deposits, 0.805 points for 3 months, 0.854 points for 6-month deposits and 0.907 points for 12-month deposits. While that difference in the end of March 2019 was at 0.819 points for 1 month deposits, 0.750 points for 3-month deposits, 0.716 points for 6-month deposits and 0.666 points for 12-month deposits. The monthly average exchange rate for the Kuwaiti Dinar against the US Dollar in March 2020 scored 307.150 Kuwaiti Fils for each US Dollar, a rise by 1.2% compared with the monthly average for March 2019 when it scored 303.538 Fils per one US Dollar.