18/02/2025
Share:
18/02/2025
Share:
Acting Prime Minister and Minister of Interior Sheikh Fahad Yousef Saud Al-Sabah chairs the weekly Cabinet meeting on Tuesday.
KUWAIT CITY, Feb 18 : The Council of Ministers has approved two draft decrees amending key provisions of Kuwait’s Civil and Commercial Procedures Law and Bankruptcy Law. Announced by Justice Minister Nasser Al-Sumait, these amendments aim to tackle the growing issue of non-payment by solvent debtors, which has contributed to a rise in bad debts and negatively impacted the country’s economic climate.
The approved draft decrees are as follows:
1. Amending the Civil and Commercial Procedure Law (Law No. 38/1980):
- Targets financially capable debtors who evade payments, increasing bad debts.
- Grants the Enforcement Administration authority to request financial disclosures and notify the credit bureau of defaults.
- Reinstates the arrest and imprisonment of delinquent debtors, with humanitarian exemptions (e.g., pregnant women, medically unfit individuals).
- Allows debt repayment in installments based on financial capacity.
Sets a maximum imprisonment duration and ensures debtors are held separately from criminal offenders.
Sets a maximum imprisonment duration and ensures debtors are held separately from criminal offenders.
2. Amending Article 5 of the Bankruptcy Law (Law No. 71/2020):
- Restores the system of arresting and imprisoning uncooperative debtors. The reforms also focus on improving enforcement efficiency, reducing the opportunity for debtors to conceal assets, and strengthening penalties for abuse of suspension mechanisms.
This move is seen as part of Kuwait’s broader effort to improve the investment climate and restore confidence in the country’s financial system. Minister Al-Sumait emphasized that these changes are essential for protecting the national economy, reducing bad debts, and ensuring a fair and transparent legal environment that balances the interests of both creditors and debtors. The amendments align with international best practices and aim to modernize Kuwaiti laws for a more equitable economic landscape.
(KUNA)
