KUWAIT CITY, Oct 4: There has been an increase in the number of expats whose residence expired as they are stranded in their home countries. This doesn’t mean that those who have taken loans have been waived off as bad debts.
Some banks have begun their process to prosecute defaulting expats who are stranded abroad and their sponsors in Kuwait with help of recovery agents/companies. The bank’s loans which are 50 KD and above will approve the prosecution of the defaulter. The total loans defaulted by expats will be known next month.
The individual loans taken by expats is generally based against the indemnity to be paid by the companies as the loan ceiling for the majority of expatriates is specific, financially does not constitute an influential mass in the financing portfolios. However to obtain loan facilities specific conditions are required to be meet in terms of salary and regularity.
Loan defaulters who are stranded outside Kuwait are those who belong to the teaching profession followed by Engineers and Medical staff.