------------- -------------- ------------------- -------------------

Industrial Bank of Kuwait credit facilities to customers increases

This post has been read 9344 times!

KUWAIT CITY, Sept 29: Statistics issued by the Industrial Bank of Kuwait shows the Kuwaiti banking sector provided credit facilities to customers during 2020 about 1.3 billion dinars, an increase of 3.5%, to reach 39.7 billion dinars by the end of 2020, compared to 38.4 billion dinars at the end of 2019, reports Al- Anba daily. According to the report the annual credit for 2020 issued by the Industrial Bank of Kuwait, a copy of which has been obtained by the daily, the real estate sector got the biggest share — 9.22 billion dinars, or 23.2% of the total credit granted by the banking sector in Kuwait. The trade sector ranked second in terms of facilities with 3.27 billion dinars, 8.2% of the total; and the industry sector came third with 2.05 billion dinars, 5.2% of the total and the construction and building sector came fourth with 1.88 billion dinars, or 4.7%. Other sectors accounted for 23.3 billion dinars, representing 58.6% of the total.

The Central Bank of Kuwait had decided during March 2020 to reduce the discount rate from 2.5% to 1.5%, which is the lowest level in history, with the aim of reducing the cost of borrowing for all economic and financial sectors, including individuals and institutions, to enhance an environment that supports economic growth and maintains cash stability. The Industrial Bank by the end of 2020 will have spent 47 years in the industrial lending activity, during which it provided soft industrial loans to 1,135 industrial projects and to 518 industrial establishments in various sectors in Kuwait.

The total accumulated obligations of the Industrial Bank with industrial loans since the start of its activity in financing industrial projects in 1974 until the end of 2020, amounted to about 1.3 billion dinars, where the average ratio of bank financing to the cost of projects was about 57%, and the average cost of one project reached about 2 million dinars.