RIYADH: Last year saw a drop of 34 percent in the number of bad checks written in the Kingdom, according to an annual report by the Saudi Credit Information Company (SIMAA). The fall from the figures for the year 2009 saw 110,676 bad checks worth SR11 billion written compared to the previous year's 167,155 worth SR15 billion, a value decrease of 26 percent. The number of bad checks written by individuals, the report said, fell by 40 percent, from 78,462 in 2009 to 47,134 in 2010. The value of the checks fell by 32 percent, from approximately SR6 billion in 2009 to around SR4 billion in 2010. The value of bad checks written by companies fell by 22 percent, from the SR9 billion-worth of bounced checks in 2009 to SR7 billion in 2010, representing a drop in number from 88,693 to 63,542, a 28-percent decrease. Nabeel Al-Mubarak, Chief Executive of SIMAA, said the tangible success in curbing bad checks is the result of the Cabinet ruling last year to criminalize the act and introduce punishments including prison terms and public defamation in local media, leading to the Bureau of Investigation and Prosecution beginning in mid-2010 to take legal action against offenders.
