99.5% of workforce Kuwaiti borrowers

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KUWAIT CITY, Oct 31: According to a government study prepared by McKinsey Global Consultancy, the number of Kuwaiti borrowers is about 447,000, representing 99.5 percent of the workforce of nearly 450,000 citizens, reports Al-Rai daily. In its study, McKinsey analyzed the data of consumer and installment loans, and relied on a database at the level of each individual customer.

This includes the data of the credit information network company, in addition to the Kuwait Credit Bank’s customers. The customers of Kuwait Credit Bank who did not borrow from other banks or financial institutions were excluded. McKinsey highlighted that the youth group between the ages of 25 and 34 years old borrowed the most and has an average debt of KD 22,122. There are 60,000 borrowers of age 55 years and above, who constitute 17 percent of the workforce. Also, 350,000 clients have a debt burden ratio of more than 30 percent.

The study explained that the percentage of monthly installments to the net salary or continuous monthly income amounted to about 27.7 percent, compared to 28.3 percent in the event that the continuous monthly income was not taken into account, and also compared to the 40 percent prescribed as a maximum monthly deduction from the salary. In addition to that, the average consumer loan is KD 3,600 and the average installment loan is KD 23,000.

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