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Kuwaiti banks face $1.8bn bad debts bill for expats

      Published on Sunday, 29 July , 2018      191 Views     
Kuwaiti banks face $1.8bn bad debts bill for expats

  • Kuwait Business

The high volume of expats being let go from public sector jobs in Kuwait has left banks in the country with a sizeable bad debt problem.

Over 1,600 expatriate workers were terminated from public sector positions in Kuwait so far this year, according to the most recent statistics from Kuwait’s Civil Service Commission (CSC).

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Of the 1,629 employees terminated, 1,431 lost their job in the last three months alone. In 2017, only 666 expatriate employees lost their jobs.

The lay-offs come as Kuwait is working to create more jobs for its nationals in state departments. The government’s ‘replacement policy’ targets the complete ‘Kuwaitsation’ of the public sector’s workforce by 2022.

The largescale job cuts for expats means many are left without the means to pay back loans or credit cards, which has created a bad debt problem for Kuwaiti banks.

The most recent data from Central Bank of Kuwait shows the total bad debts for expatriates during the past four year reached $1.8 billion, Kuwait Times reported.

The newspaper, citing sources, said a large proportion of the debts belonged to foreigners who were laid off by the government, according to sources.

Of the bad debts, 85% are owed to local banks, while the remaining 15% are owed to financial facilities companies, the newspaper added.

Category Kuwait Business | 2018/07/29 latest update at 11:00 PM
Source : Arabian Business | Photocredit : Google
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