Urge to re-consider debtors from presenting invoices for loan taken
Central Bank of Kuwait (CBK) is studying a proposal to reorganize procedures for securing loans to exempt debtors from presenting invoices to prove the purpose for which the loans were taken, local daily Arab Times reported citing Al-Rai Arabic newspaper.
According to report, sources pointed at two scenarios; the first suggests exempting debtors who receive loans up to KD 7,500 from presenting bills, and the second scenario includes those taking up to KD 5,000.
Report added that the decision that obliges debtors to provide invoices to prove they truly spent the loan for the same purpose they obtained, needs re-evaluation by the Central Bank of Kuwait and other local banks. Many debtors could not provide the required invoices, not because they violated relevant laws but it was difficult for them to do so, especially those who obtained small loans to purchase more than a single commodity, report added. Cancellation of the decision will put an end to the ‘black market invoice’ menace that is flourishing concurrently with its enforcement, it added.