Kuwaiti import financing soars by 49.3% in first nine months of 2023

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KUWAIT CITY, Oct 26: The financing provided to support Kuwaiti imports from local banks has experienced substantial growth during the initial nine months of this year in comparison to the same period last year. It has surged by an impressive 49.3%, representing an increase of 2.738 billion dinars. This boost has propelled the financing from 5.55 billion dinars during the first three quarters of 2022 to 8.296 billion dinars in the same period this year. Import financing has also increased on a monthly basis by 48.7%, totaling 298.9 million dinars, rising from 613.2 million dinars at the end of September to 912.1 million dinars at the close of September last year.

However, on an annual basis, this financing witnessed a decrease of 11.6%, amounting to 120.1 million dinars, compared to 1.03 billion dinars in September 2022. In terms of the type of financing, funding provided through other payment orders predominated over other financing methods, comprising 73.6% of the total financing. This financing category has seen a notable 60.6% increase, growing from 3.8 billion dinars during the first three quarters of 2022 to 6.1 billion dinars in the same period this year. It also increased on a monthly basis by 87.5%, adding 345.8 million dinars, rising from 395.3 million dinars at the end of August to 741.1 million dinars by the end of last September.

Documentary credits
Financing through documentary credits took second place, accounting for 23.3% of total import financing. This category experienced a growth of 40.7%, reaching a value of 560.9 million dinars. This is a substantial increase from 1.375 billion dinars in the first three quarters of 2022 to 1.936 billion dinars in the first three quarters of this year. Nonetheless, it decreased by 20.5% on a monthly basis, falling to a value of 39.2 million dinars, down from 190.4 million dinars in August to 151.2 million dinars in September.

Lastly, financing through collection policies represented 3% of the total import financing, but it saw a decrease of 33.9%. This drop resulted in a value of 129.1 million dinars, down from 380.5 million dinars in the first three quarters of 2022 to 251.4 million dinars in the same period this year. It also decreased by 28.6% on a monthly basis, with a value of 7.9 million dinars, down from 27.6 million dinars in August to 19.7 million dinars by the end of September. In terms of financing by currency, the majority of import financing was provided in US dollars, accounting for 85.8% of total import financing. This is due to a substantial 72.6% increase, with a growth of about 2.529 billion dinars.

The financing in US dollars surged from 4.596 billion dinars during the first three quarters of 2022 to 7.12 billion dinars in the same period this year. Despite an increase during September by 63.4% to a value of 308.3 million dinars, it decreased on an annual basis by 14.3% to about 133.3 million dinars, down from 927.5 million dinars in September 2022. Financing in other currencies came in second place, accounting for 6.1% of total import financing. It increased by 2% during the month of September, reaching a value of 1 million dinars, up from 47.9 million dinars in August to 48.9 million dinars. However, it decreased by 40.6% during the first three quarters, with a value of 146.4 million dinars, down from 360.2 million dinars to 506.6 million dinars.

Financing provided in euros accounted for 4.1% of the total import financing, and it increased by 14.9% on a monthly basis, amounting to 5.8 million dinars, up from 38.9 million dinars in August to 33.1 million dinars in September. Nevertheless, it decreased by 0.3% during the first three quarters, with a value of about 1.3 million dinars, down from 344.3 million dinars to 343 million dinars. Financing in UAE dirhams accounted for 1.7% and experienced a 16% increase, amounting to 19.1 million dinars, up from 119.9 million dinars in the first three quarters of 2022 to 139 million dinars in September. Financing in Saudi riyals increased by 68.8%, reaching 43.2 million dinars, up from 62.8 million dinars in the first three quarters of 2022 to 106 million dinars in the same period this year, accounting for about 1.27% of the total financing. The value of financing in Japanese yen reached 37.3 million dinars, a growth of 28.6%, compared to 29 million dinars in the first three quarters of 2022. Financing in the British pound also increased by 5.7%, with a value of 1.9 million dinars, up from 33 million dinars to 34.9 million dinars.

By Ahmad Fathi
Al-Seyassah/Arab Times Staff

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