Bankers refute MPs’ allegations on loans – Attempt to boost popularity | Kuwait Times

Local bankers rejected allegations made by lawmakers accusing them of resorting to inappropriate procedures which made many citizens default on their loans, and said the real goal behind proposals calling on the government to write-off the interest accrued on these loans was to increase MPs’ popularity among the voters. Al-Qabas newspaper spoke to directors of several local banks who insisted that a state fund established a few years ago to help defaulting citizens repay their debts was the best solution to the problem. “There is no justice in writing off the interests, apart from the fact that such a step would be in violation of the constitution,” said Gulf Bank Chairman Mahmoud Al- Nouri. Many have strongly suggested that granting defaulters with exclusive financial privileges by writing off the interests accrued on their loans – estimated by the Central Bank of Kuwait at KD1.7 billion – violates the constitutional principles of justice and equality. “Where is justice [in writing the interests off]? What about borrowers who have been repaying regularly?” Gulf Bank’s CEO Michelle Akkad questioned.
Bankers refute MPs’ allegations on loans – Attempt to boost popularity | Kuwait Times