KUWAIT CITY, July 27: The Ministry of Finance, based on data from the Central Bank of Kuwait, affirmed that the rate of irregularity in the repayment of loans of Kuwaitis and the rate of default in these loans are the lowest in the world, reports Al-Qabas daily.
This came in response Finance Minister Dr Nayef Al-Hajraf to a parliamentary question presented by MP Shu’aib Al-Muwaisri. He said: “We confirm that non-performing loans account for less than two percent of the total consumer and housing loan portfolio.
That is, regular loans repay more than 98 percent of this portfolio, which confirms the high ability of borrowers to pay their debts easily.” He added: “We also wish that the high rate of regularity in loans was reflected in the low rate of loans for which legal action reached less than one percent of the portfolio. The number of customers defaulting also accounts for less than one percent of the total number of borrowers, so that the rates of irregularity and default in these loans are the lowest in the world.”
This clearly confirms that the procedures for granting these loans by banks are conducted on the basis of prudent regulations issued by the Central Bank of Kuwait which take into account, first and foremost, the granting of such loans with utmost transparency and under condition that the citizen can take a credit decision in light of clear data, because of the financial burdens incurred throughout the loan period.
This is supported by other regulatory controls issued by the Central Bank of Kuwait regarding independent external audit of the procedures for granting these loans on the total portfolio and by 100 percent to verify the banks’ compliance, in addition to the auditing carried out by the Central Bank through periodic supervision. It should also be noted that the Central Bank of Kuwait’s Consumer Protection Guide include numerous controls designed to protect the rights of customers in a balanced relationship with the banking sector.