Sunday 22, July 2018 by Kudakwashe

Kuwait banks to face $1.8 billion bad debts for laid off expatriates

 

The number of expatriate employees in state departments dropped by 70 per cent in the past six months, according to Central Statistical Bureau and Civil Service Commission.

  

The Central Bank of Kuwait said that the total amount of bad debts for expatriates during the past four year reached $1.8 billion and part of the bad debts are for the foreigners who were laid off by the government.

The central bank said that, 85 per cent of those debts are owed to local banks, while the remaining 15 per cent are owed to financial facilities companies.

Kuwait’s Kuwaitisation efforts has created a problem as thousands of laid off expatriates are unable to fulfil their financial obligations towards local banks.

The number of expats in the public sector dropped from 340,000 to 80,000, as of the end of June, reported local daily, Kuwait Times.

 

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