Legal action vowed against 4,770 loan defaulters

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KUWAIT CITY, Dec 29: Statistics issued by the Central Bank of Kuwait show 4,770 people have taken about 5,250 loans worth 59 million dinars since the beginning of this year and legal action is expected to be initiated against them for failure to honor their commitments, reports Al-Qabas daily.

However, there is a possibility this figure may have changed slightly according to reliable banking sources. The sources confirmed that this number is among the lowest for the past 10 years.

In 2009, following the outbreak of the financial crisis, the number of borrowers on whom legal action was taken was about 18,800.

The number declined in 2010 to about 13,700, and then to 10, 9 thousand and 8 thousand in the subsequent years. The number in 2016 was about 4,842, compared to 5,804 in 2015.

The amounts were the highest in 2009 believed to be 170 million dinars, and the figure gradually decreased in each subsequent year.

These statistics include consumer loans and housing loans as well as expatriate loans. The sources pointed to the stage in which the fund was approved for the defaulters and then called the ‘Family Fund’, has borne the cost of about 766 million dinars until last June, and 32,200 defaulters benefited from the Fund.

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