Sources revealed that banks have relaxed their credit restrictions towards residents, allowing their lending to resume again, while maintaining their reservations about financing some non-Kuwaiti professions whose sustainability is doubtful for them, in an effort to reduce the risk of default that still threatens some sectors.
In this regard, the sources indicated that most banks have returned to the same credit policy that they were pursuing with residents before the spread of the repercussions of the Corona virus, after the crisis during the last period led to its tightening of credit, to the extent that it stopped giving all expatriates consumer loans, especially those working in companies The private sector, in order to avoid future exposure to loans that may be disrupted by the negative economic effects of the outbreak of the pandemic, which led to the layoffs of a large segment of employees.
She indicated, that there has been a change in the recent period in the credit policy pursued by local banks, explaining that after the economic opening approved by the government in almost all its stages, and the return of economic sectors to work again, even if they were below the desired level so far, the banking concerns subsided. From the wave of stumbles that were sweeping most companies in the first months of the spread of the Corona virus, as it began to allow residents, especially those financially stable, to borrow again, while keeping the door closed to some threatened professions, as part of its policy to avoid high risks.
Central bank data indicates that the size of the personal loan portfolio amounts to 16.3 billion dinars, of which about 1.4 billion are consumer loans and 11.8 billion are installment loans, and the remainder is divided between unclassified loans and others for the purchase of stocks and real estate, noting that according to the sources, resident borrowers are About 10 percent of the total value of individual loans, and about 58 percent of their numbers.
The sources indicated that Corona had pushed banks in the past six months to follow a strict banking policy that narrowed the credit opportunity for the resident, as the consumer loan was limited to a very small list of government jobs, foremost among which was the Ministries of Health and Education, and without that in sectors including: That is, private sector companies were not able to their employees during the last period to obtain a consumer loan, even if it was intended to buy cars or education.
She added that the economic vision of the private sector and the status of expatriate workers in its companies has become more clear in the recent period compared to the first months of the spread of Corona, which necessitated a bank review that was based on its results to reduce strictness in granting funds to residents.