KUWAIT CITY, Aug 16, (Agencies): Local finance companies have begun asking their expatriate clients who wish to take consumer loans to obtain “debt acknowledgment” from the Ministry of Justice as a prerequisite for approval of their loans, reports Al-Anba daily. The move is in tandem with the decision of local banks to stop financing expatriates – except for a few employees in government sector – under the implementation of orders from the Central Bank of Kuwait to be strict on granting loans in the era of the corona pandemic.
A reliable source was quoted as saying the debt approval process documented by the Ministry of Justice was activated on expatriate borrowers two weeks ago, according to principles and standards instituted through the administrative and legal points of view.
He stated the goal of the debt acknowledgement is to view the client’s legal record and related legal aspects, verify the document, and to facilitate the procedural inquiries made by finance companies and banks through the ci-net credit information network.
They indicated the document is considered an acknowledgment by the client before concerned authorities in Kuwait to avoid debt evasion. He explained that the process of approving debt is completed at the service centers of Ministry of Justice spread across the country with stamp fee of KD 3. It is noteworthy that consumer loans can be used in buying cars, furniture, and sponsoring education, medical treatment etc