The Central Bank of Kuwait said that the current maximum interest rate on consumer loans and (housing) installment loans in the State of Kuwait should not exceed 6.5% annually (3.5% discount rate, in addition to a margin of a maximum of 3.0% under the interest rate structure currently in force).
The Central Bank stated, in response to MP Osama Al-Zaid, that this cost of borrowing is lower than the cost of borrowing from a group of major world countries and countries in the region, as evidenced by surveys conducted by the Central Bank of Kuwait on interest rates applied continuously, reports Al-Qabas daily.
The statement added that the mechanism of the interest rate structure at the level of the loan and deposit portfolios of local banks, and the intervention of the Central Bank of Kuwait, affect the maximum limits of interest rates on loans, and obligate banks to these maximum limits without there being, in return, what obliges banks to have maximum or minimum limits on interest rates on customer deposits.
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