Kuwait: In its June 2022 monthly statistical bulletin posted on its website, the Central Bank of Kuwait (CBK) said its total public debt (including securities and bond transactions since April 2016) stood at 450 million. 10,000 KD decreased and reached 500 million KD. $1 million by the end of June 2022 compared to June 2021, or an estimated 2022 GDP of $57,951 million (EIU estimate), or 0.9% excluding foreign public debt .
The average one-year interest rate (return) on public debt instruments was 2.750%, 2-year 3.250%, 3-year 3.375%, 5-year 3.625%, 7-year 3.750%, and 10-year 3.875%. Local banks hold 100% of all public debt products (100% as of end-June 2021). According to the CBK Bulletin, by the end of June 2022, the total amount of credit lines for residents provided by local banks will reach KD 44.679 billion, which is about 54.6% of the total assets of local banks, and will reach KD 3.924 billion. 10,000 KD increased, showing a growth rate of 9.6%. June 2021 levels.
Total retail facilities recorded KD 20.52 billion, or 45.9% of total credit facilities (KD 17.951 billion at the end of June 2021), an increase of 14.2%. Based on our estimates, this is a deviation from beneficial credit growth. The total amount of installment loans was KD 15,214 million, which is equivalent to 74.2% of the total amount of private facilities. The share of facilities provided for securities purchase reached KD 3.05 billion, accounting for 14.7% of the total private facilities. The value of consumer loans reached KD 1.896 billion. The line of credit to the real estate sector reached KD 9,771 million, accounting for 21.9% of the total amount (KD 9,370 million as of the end of June 2021).
This meant that about two-thirds of the lines of credit went to personal and real estate lines. Nearly 3.312 billion KD or 7.4% was spent on the trade sector (3.196 billion KD as of the end of June 2021) and 2.484 billion KD or 5.6% was spent on the industrial sector (200 million KD as of the end of June 2021). 20 million KD ) and 19.59 million KD was invested. $1 billion or 4.4% was spent in the construction sector (1,854 million KD at the end of June 2021) and 975 million KD or 2.2% was spent in non-bank financial institutions (at the end of June 2021 953 million KD).
The bulletin also showed that the total deposits of local banks was KD 47.18 billion, which is equivalent to 57.6% of the total liabilities of local banks, down 6.7% compared to June 2021 due to the increase in public sector. It represents an increase of 2.955 billion KD in growth rate. Deposits increased by 316.7 million KD, while private sector deposits increased by 2,638 million KD.
About $39.917 billion, or 84.7%, went to private sector customers, an inclusive definition that includes major institutions such as public sector social security institutions, and does not include governments. About 37.272 billion KD was paid in Kuwaiti Dinar, 93.4% to private sector customers and 2.645 billion KD worth in foreign currency to private sector customers.
Regarding the average interest rates of customers’ fixed deposits in both Kuwaiti Dinar and USD compared to the end of June 2021, we recall that the difference in average interest rates is still in favor of the Kuwaiti Dinar as of the end of June 2021. both periods. However, rising US interest rates outweighed the increase in the Kuwaiti Dinar discount rate, narrowing the gap.
The difference was 0.583 points for the 1-month deposit, 0.383 points for the 3-month deposit, 0.388 points for the 6-month deposit, and 0.419 points for the 12-month deposit. Conversely, the difference at the end of June 2021 was 0.733 points for 1-month deposits, 0.809 points for 3-month deposits, 0.858 points for 6-month deposits and 0.896 points for 12-month deposits. The average monthly exchange rate of the Kuwaiti Dinar against the US Dollar in June 2022 was 306.240 Kuwaiti Fils per US Dollar, a decrease of -1. That’s 8% compared to the monthly average in June 2021, which recorded 300.900 fills per USD.
