Financial and Monetary Statistics – September 2019

In its monthly monetary statistical bulletin for the month of September 2019, as published on its website, the Central Bank of Kuwait (CBK) stated that the balance of total public debt instruments -bonds and Tawarruq operations are included since April 2016- declined by KD 600 million by June 2019 to become KD 2.372 billion in the end of September 2019, 5.6% of the nominal GDP for 2018 in the amount of KD 42.475 billion. The average interest rate on public debt instruments scored 3.250% for one year, 3.375% for 2 years, 3.375% for 3 years, 3.500% for 5 years, 3.625% for 7 years and 3.875% for 10 years. Local banks capture 100% of total public debt tools (100% in the end of June 2019).The CBK bulletin states that total credit facilities for residents offered by local banks in the end of September 2019 was at nearly KD 38.093 billion, about 54.5% of total local banks’ assets, rising by KD 211.3 million or a quarterly growth rate of 0.56%, over its level in the end of June 2019. Total personal facilities were at KD 16.358 billion or 42.9% of total credit facilities (KD 15.976 billion in the end of June 2019), a quarterly growth rate by 2.4%. Total value of installed loans there from scored about KD 11.871 billion, or 72.6% of the total value of personal facilities. An amount of KD 2.765 billion or 16.9% of the total personal facilities, went for the purchase of securities. Value of consumer loans amounted to KD 1.331 billion. Credit facilities for the real estate sector amounted to KD 8.575 billion or 22.5% of the total (KD 8.615 billion in the end of June 2019), approximately two-thirds of the credit facilities went to personal and real estate facilities. The trade sector acquired KD 3.383 billion or 8.9% (KD 3.430 billion in the end of June 2019), nearly KD 2.067 billion or 5.4% went to the construction sector (KD 2.008 billion in the end of June 2019), and KD 2.008 billion went to the industry sector or 5.3% (KD 1.997 billion in the end of June 2019), and KD 1.083 billion or 2.8% went to the financial institutions -other than banks- (KD 1.159 billion in the end of June 2019). 

The bulletin also indicates that total deposits at local banks scored KD 43.414 billion representing 62.1% of total local banks liabilities, a decline by KD 610.3 million below its amount in the end of June 2019, a quarterly decline rate by -1.4%, due to the decrease of private sector deposits by KD 644 million. About KD 36.471 billion -84%- 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 33.768 billion were in Kuwaiti Dinars (KD 34.588 billion in the end of June 2019), 92.6% went to private sector clients and the equivalent of KD 2.703 billion was in foreign currency to private sector clients.As for the average interest rate on customer time deposits, both in the Kuwaiti Dinar and the US Dollar versus the end of June 2019, the bulletin states that it is still in favor of the Kuwaiti Dinar in the end of the two periods, as a result of the US Federal Reserve reducing the base interest rate on the US Dollar by 0.50 percentage point during the 3rd quarter of the current year. It registered at 1.015 points for 1-month deposits, 0.968 point for 3-month, 0.998 point for 6-month deposits, and 1.019 points for 12-month deposits. This difference at the end of June 2019 was 0.764 point for 1-month deposits, 0.727 point for 3-month deposits, 0.738 point for 6-month deposits, and 0.742 point for 12-month deposits. The monthly average exchange rate for the Kuwaiti Dinar against the US Dollar in September 2019 scored about 303.760 Kuwaiti Fils for each US Dollar, increasing slightly by 0.09%, compared with the monthly average for June 2019 when it was 303.494 Kuwaiti Fils per one US Dollar.