The Kuwaiti government could be forced to write-off up to $6 billion worth of debts owed by residents and businesses because they have failed to collect them within the statute of limitations, Arab Times reported.
The state is owed KD1.8 billion ($6.1 billion), up from KD1.1 billion in April last year, according to the Ministry of Finance.
Sources close to the ministry reported told Arab Times many of the debts had been accrued years ago may no longer be enforceable.
The news comes as Kuwait is studying alternative revenue methods following a 60 percent drop in the price of oil, which accounts for 90 percent of the country’s export revenues.
About two-thirds of the country’s population are expats, however they are usually not allowed to officially exit the country without paying all debts and closing bank accounts.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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