The number of foreigners terminated from public sector jobs in Kuwait has left banks in the country with a sizeable bad debt problem.
Local media said that Kuwait’s efforts to create more jobs for nationals by releasing foreigners has created a problem when thousands of laid off expatriates became unable to fulfill their financial obligations towards local banks.
Kuwait Times reported recent data from the Central Bank of Kuwait that shows the total bad debts for expatriates during the past four years reached $1.8 billion, a sizable portion of which comprise the debts of foreigners who were laid off by the government, according to sources.
Eighty five percent of those debts are owed to local banks, while the remaining 15 percent are owed to financial facilities companies.
According to official statistics released by the Central Statistical Bureau and Civil Service Commission, the number of expats in the public sector dropped to 80,000, compared to around 340,000 Kuwaiti employees as of the end of June.
Also, over 1,600 expatriate workers were terminated from public sector positions in Kuwait so far this year, according to Kuwait’s Civil Service Commission (CSC).
Also Read
-
Filipino expats vow to stay in Kuwait despite workers ban
Filipino expat workers told Al Arabiya that they are vowing to stay in Kuwait despite a ban request from their president because they say there are no ... Gulf -
Kuwait to reject residency permits to expats struck with cancer, other illnesses
The State of Kuwait is no longer offering a residency permit to expats suffering from cancer, diabetes, high blood pressure and other non-infectious ... Gulf -
Kuwait ‘deports 41,000 expats in 16 months’
The small Gulf state is currently looking to cut its large expat population Economy -
Kuwait reinstates ban on Bangladeshi workers
Kuwait’s interior ministry reinstated a ban on the recruitment of Bangladeshi workers after months of allowing them to work in the country under ... Gulf
