Credit facilities extended by Kuwaiti banks have gained momentum during 2012 compared to marginal growth rates recorded during 2011 and 2010. The loan portfolio of Kuwaiti banks grew at 5% in 2012 to record KD 26.9 billion ($95.4 billion) at the end of December-12 representing around 54% of 2012 forecast GDP. This growth rate is favorably compared to the 1.6% and 0.4% recorded during 2011 and 2010, respectively.
Despite the low appetite for credit, banks’ conservative lending policies, and the restructuring of corporate debt along with delay in implementing a dozen of infrastructure and economic projects, the credit market has witnessed signs of recovery in 2012 that will most likely continue through 2013 driven by the easing of political tension in the country along with the gradual restoration of confidence in the private sector and the recovery of the property market and the local bourse.
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