BUSINESS

SATURDAY, MARCH 28 , 2015

Kuwait: Credit growth steady at 6.2%

NBK ECONOMIC REPORT

KUWAIT: Credit saw a small increase in January, half of its January 2009 value. January credit to with growth steady at 6.2% y/y. Credit was up a the sector was down by 9.2% y/y. mere KD 18 million during the month, with solid household and business credit growth offset by Robust lending a drop in securities lending. Growth in business Meanwhile, remaining credit declined by KD credit excluding securities lending accelerated 54 million, though business credit excluding to 5.8% y/y, but remained below the pace seen securities lending was robust. Lending for the during the first three quarters of 2014. Money purchase of securities, volatile on a monthly supply contracted on the back of a drop in pri - basis, was the main source of weakness, declin - vate deposits. Deposit and interbank rates eased ing by KD 165 million in January. This was offset during the month. by healthy gains in trade, real estate and “other Household debt maintained a strong pace, sectors”. While business credit excluding securi - gaining KD 83 million, though growth eased ties lending saw a good month in January, slightly to 12.5% y/y. Most of the growth in growth remained weaker than during the same household debt continued to come from install - period a year before. ment loans, whose growth stood at 15% y/y. The Broad money supply (M2) growth eased fur - strong growth in this segment continues to be ther in January to 2.2% y/y as deposits saw a driven by robust employment and household decline. Private deposits were down by KD 402 income trends, as well as strong demand for million, which was split between KD time home purchases. deposits, which declined by KD 261 million, and Credit to non-bank financials declined by KD KD sight, off by KD 219 million. Growth in the 12 million, as deleveraging in this sector narrower M1 measure of money supply fell to resumed. Nonbanks continued to deleverage, 2.6% y/y, its slowest pace since early 2012. though the pace has been declining, reflecting a Average customer deposit rates on dinar month, 3-month, 6-month and 12-month time rates declined for a fourth consecutive month, stabilization in volume. Credit to nonbank finan - time deposits saw small declines in January, as deposits declined by 2-4 bps to 0.58%, 0.76%, with the 1-month KIBOR offer rate dropping by cials currently stands at KD 1.4 billion, almost did interbank rates. The average rates on the 1- 0.95% and 1.18%, respectively. KD interbank 10bps to 0.88%. Thai airlines face scrutiny over safety, bans on new flights

BANGKOK: is facing bans on new in a statement. Flag carrier is licensing and training, airworthiness assess - tered carriers to fly into Japanese airports. international flights and increased inspec - also affected. The disruptions come ahead ment and certification, accident investiga - The Japanese ban covers any “change of tions after the International Civil Aviation of Thailand’s traditional new year, known as tion and airline operations oversight, aviation services” and also bars airlines from Organization flagged significant concerns Songkran, a heavy travel season when air - according to a report by Watson Farley and changing the type of aircraft normally used about the country’s aviation safety, officials lines typically increase the number of Williams, an international law firm with a on scheduled routes, the Thai civil aviation said yesterday. flights. Thailand is one of the world’s top commercial transport practice. department said. The ICAO’s designation of Thailand as a tourist destinations and its tourism industry In , a bureau spokesman Noriaki “significant safety concern” has not been is crucial to the economy, employing mil - Ban on charter flights Umezawa said the measure was a tempo - announced publicly by the UN agency but lions of people. The ICAO office in referred rary one issued because of concerns the air - governments were informed last week. Thai Airways President Jarumporn questions to its headquarters in Montreal, lines may not fully meet international safety Kwak Young-pil, an official from South Chotikasathein said the airline would have which could not immediately be reached for standards. Korea’s Ministry of Land, Infrastructure and to cancel “about five” charter flights that comment. South Korean said it was considering a Transport, said yesterday that the ICAO were being planned for the April holiday The Thai ministry’s statement did not similar ban. Kwak, the South Korean trans - made the designation on March 20. schedule. He said Thai Airways and other give details of the ICAO’s concerns or rec - port official, said it was highly unlikely that has blocked new flights from Thai carriers will also have to undergo ommendations. It said that it planned to new flights would be approved. NokScoot Thailand following the ICAO decision and increased inspections by regulators from inform countries about the status of was planning to start flights to Seoul’s South Korea is considering similar meas - other countries as a result of the ICAO des - Thailand’s aviation safety and “the solutions Incheon Airport in May. ures, officials said. Existing flights aren’t ignation. to fix the faults that were found in the He said flights currently operating affected. Thailand was audited by the ICAO in inspection as soon as possible.” between Thailand and South Korea will not Among the airlines forced to cancel January, about a decade after its last assess - Japan’s Civil Aviation Bureau informed be affected. Elaine Kurtenbach in Tokyo, flights are budget carriers Thai AirAsia X, ment in 2005. Audits assess a country’s Thailand’s civil aviation department by Thanyarat Doksone in Bangkok and Tong- NokScoot and Asia Atlantic Airline, overall ability to ensure aviation safety. email earlier this week that it will not allow hyung Kim in Seoul, South Korea con - Thailand’s Department of Civil Aviation said Among the areas considered are personnel new charter flights operated by Thai-regis - tributed. — AP