Kuwait Court of Cassation principle number 638

Decree-Law 32 of 1992 authorized the Central Bank of Kuwait to purchase the aggregate distressed debts of Kuwaiti customers owed to local banks and investment companies and Kuwait Finance House. The debts are transferred at their book value on 1/8/1990, plus interest due up to the purchase date of 31/12/1991, together with all their real and personal securities. The purpose thereof is to stimulate the Kuwaiti economy and facilitate Kuwaiti citizens' repayment of the debts they owe.