Banking sources have estimated that expats have taken out a total of 4 billion Kuwaiti dinars in loans.
21 October 2020, 12:00 AM
31 October 2020, 12:00 AM
Over 4 billion kwd loans have been provided to expats, according to Al Qabas reports. Out of the 4 billion, 3.4 billion were installment loans for housing purposes, compared to the 622 million Kuwaiti dinars in consumer loans.
According to the latest statistics by the Central Bank of Kuwait, the total amount for personal loans taken out in Kuwait reached 16.6 billion Kuwaiti dinars. Majority of the personal loans were borrowed by Kuwaitis, as expats took out 24 per cent of the total amount borrowed.
Banking sources said that a recent study showed that 40 per cent of the overall consumer loans in the country were taken out by expats, while the other 60 per cent were taken out by Kuwaitis.
As for housing loans, Kuwaitis took the majority of the loans, around 72 per cent, compared to expats who took out 28 per cent.
While many expats have started leaving Kuwait due to expired visas, some banks have begun the process of prosecuting those with unpaid loans, Al Rai reported.
A source told Al Rai, “the loans taken out by expats are not waived if their residencies expire and some banks have begun to prosecute defaulting clients abroad and their sponsors at home, with the help of debt collection companies.”