‘Spend­ing re­ceipt’ halts ex­pats loans

Kuwait Times - - FROM THE ARABIC PRESS -

KUWAIT: Sev­eral banks have found con­fus­ing a num­ber of in­struc­tions re­cently given by the Cen­tral Bank of Kuwait, per­tain­ing with man­dat­ing bank clients who get con­sumer loans to pro­vide re­ceipts which prove how the loans were spent, sources said. The ma­jor prob­lem about such con­di­tion is how to re­ceive re­ceipts from ex­pats who get loans to spend them abroad, the sources ex­plained. “The cen­tral bank left this point un­clear in terms of who to hold ac­count­able if an ex­pat, for in­stance, pro­vided fake re­ceipts and doc­u­ments about how the loan was spent,” stressed the sources, point­ing out that, ac­cord­ingly, some banks have be­come very metic­u­lous about giv­ing loans to be spent abroad, while oth­ers sus­pended such loans un­til things be­come clearer.

No­tably, all banks ask ex­pa­tri­ate clients to pro­vide salary con­tin­u­a­tion and in­dem­nity state­ment cer­tifi­cates to guar­an­tee col­lect­ing the loans back from ei­ther clients or their em­ploy­ers. Fur­ther­more, the sources said that both the Cen­tral Bank and lo­cal banks had met sev­eral times in the past with­out man­ag­ing to de­cide who would be re­spon­si­ble for de­ter­min­ing the va­lid­ity of those re­ceipts and bills. They also stressed that in case those doc­u­ments were proven fake within six months from giv­ing the loan, the con­cerned client, in­clud­ing those spend­ing their loans lo­cally, would be black­listed. —Al-An­baa

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