Expectations over a decision to scrap interest on bank loans gained momentum yesterday after the five MPs of the opposition Popular Action Bloc, including Assembly Speaker Ahmad Al-Saadoun, submitted a draft law calling for the government to scrap hundreds of millions of dinars in interest. The bill, signed by MPs Musallam Al-Barrak, Mohammad Al-Khalifa, Ali Al-Deqbasi and Khaled Al-Tahous in addition to Saadoun, also calls for paying every Kuwaiti citizen KD 1,000 to go side by side with the abolishing of interests.
The financial cost of the two measures is not immediately known but it will be close to KD 2 billion because the cost of the grant alone will be around KD 1.2 billion. The bill calls for the government to bear the total cost of the bill and for the local banks to reschedule the debt of Kuwaiti citizens provided the value of the loan does not exceed KD 70,000. The banks are required to reschedule repayment by scrapping the interest provided the value of each installment does not exceed 30 percent of the debtor’s income.
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