Feb 22 2012
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'Cabinet has no intention to waive off loans and interest'
Protect interests of the nation: Al-Shamali
According to the minister, the loans cancellation issue is complicated and no decision must be taken without analyzing the financial position of the country.
He said some people think it is easy to address the problem, claiming only one signature is needed to take a decision but this is impossible, particularly since the estimated total loan amount is said to have reached KD 6 billion.
Calling on the citizens not to dwell on the issue to protect the interests of the country, Al-Shamali explained the previous government has established the Fund for the Needy, in coordination with other authorities.
He said the fund has provided financial assistance to 28,000 needy citizens who met the specified conditions. He added some of those who have obtained loans from banks and other financial institutions have been found to be not eligible for financial support.
In a related development, a reliable source from the government said the Central Bank of Kuwait's initiative to gather information on Kuwaiti loan-takers is part of the periodical steps taken by the bank to determine the actual number of citizens with accumulating loans and those who have benefited from the Fund for the Needy.
Meanwhile, MP Abdulhamid Dashti recently posted on his Twitter account that files of debtors have been forwarded to the Central Bank, hoping for the distribution of the Amiri grant in the coming days to ease the financial burdens of defaulters through the cancellation of interest payments.
On the other hand, Popular Labor Bloc members MPs Mohammad Al-Khalifa, Musallam Al-Barrack, Khalid Tahoos and Ali Al-Deqbasi have presented a draft bill on requiring the banks and investment companies under the supervision of the Central Bank to restructure consumer loans to help debtors overcome their financial woes with an estimated cost of KD 70,000 maximum for each debtor.
The proponents called for the implementation of the proposal after the cancellation of the interest payments, in addition to a cash gift of KD 1,000 for each Kuwaiti registered at the Public Authority for Civil Information (PACI) on the day the bill takes effect.
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