In a decisive policy shift, Kuwait has reinstated imprisonment for debtors who evade payment despite having the financial means to settle their obligations. This move, part of broader legal amendments, is aimed at curbing rising bad debts and reinforcing trust in the country’s financial system.
The Council of Ministers has approved amendments to the Civil and Commercial Procedures Law and the Bankruptcy Law, signaling a tougher stance on financial accountability. Justice Minister Nasser Al-Sumait outlined key changes, which include:
- Empowering enforcement authorities to demand financial disclosures and report defaulters to credit agencies.
- Reintroducing arrest and imprisonment for debt evasion, with exceptions for humanitarian cases.
- Allowing debt repayments in installments based on individual financial capacity.
- Imposing stricter measures to prevent asset concealment and abuse of legal loopholes.
These legal reforms reflect Kuwait’s commitment to fostering a stable investment environment and aligning its regulations with global best practices. By holding delinquent debtors accountable, the government aims to protect economic interests while ensuring fairness for both creditors and borrowers.
