01 March 2006
The allocation of BD41 million to pay 50 per cent of the loans taken by retired employees from the Pension Fund was approved by the Chamber of Deputies yesterday.
The proposal to be approved by the government will benefit 11,200 of about 45,000 retired subscribers.
The fund's general manager, Rashid Al Meer, told the Chamber that the proposal, if implemented, would violate the principle of equality between retired employees and lead to the fund's bankruptcy. Deputy Isa Abulfateh intervened and said that since the government would be asked to pay the remaining loans, the fund shouldn't interfere in the matter.
Deputy Ali Ahmed said the leadership's gestures had included all segments of society except the retired who also needed assistance because they earned very little.
The Chamber also approved a proposal to waive half the loans of those those who have not been benefited by the leadership's gestures for housing facilities.
During discussion, the Minister of Works and Housing, Fahmi bin Ali Al Jowder, warned against the adverse impact the approval on the financial condition of the Housing Bank.
He said the 2002 gesture of reducing the loans had badly affected the bank and similar moves could lead to a financial crisis in the bank. But deputies pressed for the proposal and voted for it. "The government can afford to make more such gestures as the budgetary surplus in 2005 has reached around BD500," Abulfateh said.
The allocation of BD41 million to pay 50 per cent of the loans taken by retired employees from the Pension Fund was approved by the Chamber of Deputies yesterday.
The proposal to be approved by the government will benefit 11,200 of about 45,000 retired subscribers.
The fund's general manager, Rashid Al Meer, told the Chamber that the proposal, if implemented, would violate the principle of equality between retired employees and lead to the fund's bankruptcy. Deputy Isa Abulfateh intervened and said that since the government would be asked to pay the remaining loans, the fund shouldn't interfere in the matter.
Deputy Ali Ahmed said the leadership's gestures had included all segments of society except the retired who also needed assistance because they earned very little.
The Chamber also approved a proposal to waive half the loans of those those who have not been benefited by the leadership's gestures for housing facilities.
During discussion, the Minister of Works and Housing, Fahmi bin Ali Al Jowder, warned against the adverse impact the approval on the financial condition of the Housing Bank.
He said the 2002 gesture of reducing the loans had badly affected the bank and similar moves could lead to a financial crisis in the bank. But deputies pressed for the proposal and voted for it. "The government can afford to make more such gestures as the budgetary surplus in 2005 has reached around BD500," Abulfateh said.
© Bahrain Tribune 2006
