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KUWAIT CITY, Sept 25: During the first eight months of this year, Kuwaiti imports received a substantial boost in financial support from local banks, marking a remarkable 63.1 percent increase, equivalent to 2.859 billion dinars. This surge in financing saw the total amount rise from 4.52 billion dinars in the same period of the previous year to 7.38 billion dinars in the current year.
Monthly statistics also reveal a positive trend, with import financing climbing by 2.5 percent, or approximately 15.3 million dinars. The figures ascended from 597.9 million dinars at the end of July to 613.2 million dinars at the close of August. However, on an annual basis, there was a 15.7 percent decrease, amounting to 114.7 million dinars, compared to the August 2022 figure of 727.9 million dinars.
Breaking down the types of financing, it becomes evident that other payment orders dominated the landscape, constituting a significant 72.7 percent of the total financing. This category exhibited impressive growth, surging by 81 percent and reaching 5.36 billion dinars from 2.965 billion dinars in the eight months of 2022. Nevertheless, it experienced a slight dip of 1.9 percent, or 7.8 million dinars, between July and August, sliding from 403 million dinars to 395.3 million dinars.
Documentary credits secured the second spot, accounting for 24.2 percent of total import financing. This segment demonstrated a growth rate of 46 percent, translating to 563.8 million dinars, as it expanded from 1.22 billion dinars in the first eight months of the previous year to 1.785 billion dinars in the same period of the current year. The monthly data showed a notable 21.4 percent increase, with a value of 33.6 million dinars, rising from 156 million dinars in July to 190.4 million dinars in August.
Financing through collection policies represented 3.1 percent of total import financing but saw a decline of 31.6 percent, falling to 231.7 million dinars from 338.8 million dinars in the eight months of 2022. The month-on-month decrease amounted to 27.5 percent, or 10.5 million dinars, with a drop from 38.1 million dinars in July to 27.6 million dinars by the end of August.
An overwhelming majority, 85.6 percent, of the import financing was conducted in US dollars. This category experienced a significant uptick of 72.6 percent, equivalent to 2.662 billion dinars, rising from 3.664 billion dinars in the first eight months of 2022 to 6.326 billion dinars in the same period of the current year. However, there was a marginal 0.26 percent decline in August, with the value decreasing from 487.2 million dinars to 485.9 million dinars. Year-on-year, these financings dropped by 19.3 percent, settling at approximately 116.2 million dinars, down from 602.1 million dinars in August 2022.
Other currencies accounted for 6.2 percent of the total import financing, experiencing a 9.8 percent boost in August, increasing from 43.6 million dinars to 47.9 million dinars. However, over the span of eight months, they witnessed a 22 percent decrease, dropping from 308 million dinars to 457.7 million dinars.
Financing in euros comprised 4.2 percent of the total import financing and saw a monthly increase of 20.4 percent, rising from 32.3 million dinars in July to 38.9 million dinars in August. Yet, within the eight-month timeframe, there was a 2 percent decrease of approximately 6.3 million dinars, falling from 316.2 million dinars to 309.9 million dinars in the same period of the current year.
Financing in UAE dirhams accounted for 1.7 percent of the total, exhibiting a 16.8 percent increase amounting to 18.2 million dinars, up from 108.3 million dinars in the first eight months of 2022 to 126.5 million dinars in August.
Lastly, financing in Saudi riyals witnessed an impressive surge of 67.2 percent, reaching 93.5 million dinars from 55.9 million dinars in the eight months of 2022. This accounted for approximately 1.26 percent of the total financing.
By Ahmad Fathi
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