KUWAIT CITY, Jan 21: Amidst the change in Kuwait’s economic situation coupled with prices of oil dropping below the benchmark and necessitating initiatives for appropriate solutions, Kuwait Credit Bank has been considering the need to carry out a study with an international consultancy firm to find means of diversifying the sources of revenues, reports Al-Anba daily.
General Manager of Credit Bank Salah Al-Mudhaf disclosed that the proposal will prevent depletion of the national treasury, which suffers deficit for the first time in 15 years. He added the bank is considered a social credit and comfort for citizens, and it prioritizes sustainable credit and a strong financial backing that will not be affected much by the unstable international oil prices. He is confident the bank should be able to finance about 12,000 housing units annually.
He disclosed the bank will change the trend on the duration of credit facility payment from the usual 25-30 years across the world to be 57 years in Kuwait. He added the value of the monthly installment in countries of the world is around 20 percent of the total income, so the bank will reduce its installment rate far below this percentage. He pledged the bank will increase the maximum housing loan from the current KD 70,000, which he regards as inadequate, to acquire a suitable property.