Saudi defaulters hit with employment ban

Jul 04, 2009 at 11:32

Banks, investment companies, telecoms and auto distributors stop hiring people defaulting on repayments.

Banks and investment companies in Saudi Arabia recently took a decision not to employ individuals defaulting on the repayment of financial obligations to banks, telecommunications companies or other firms that grant credit, Abha-based Al-Watan daily reported on Saturday.

The new hiring policy by telecommunications companies and automobile distributors will be implemented soon, the paper reported citing bankers.

The aim of the move is to reduce defaulting debts on the local market in addition to insuring the future "good" behavior of new employees, the bankers told the daily.

All Saudi banks, in addition to telecommunications companies and some automobile distributors and installment companies get their information about the credit history of potential employees from the Saudi Credit Bureau (Simah) in which they are members, Al-Watan reported.