Panel approves debt relief, KD 1,000 grantFinancial Services - Zawya

By B Izzak KUWAIT: The National Assembly's financial and economic affairs committee yesterday unanimously approved a draft law stipulating that the government will forgive interest on loans taken by Kuwaiti citizens and providing a grant of KD 1,000 to those who will not benefit from the interest write-off. HH the Amir Sheikh Sabah Al-Ahmad Al-Sabah meanwhile told a number of MPs not to rush the issue of the loan interest write-off so as not to negatively impact the Reserve Fund for Future Generations. MP Yacoub Al-Sane, one of those who met the Amir, said "we assured the Amir that we represent the nation and that we will never accept anything that may harm national interests or the Future Generations Fund".

According to the bill, interests incurred on bank loans taken between Jan 1, 2002 and March 31, 2008 will be forgiven and debtors will be asked only to repay the principal of the loan. The committee did not provide figures on how many people will benefit from the write-off or the cost of the bill on state coffers. Earlier this month, Central Bank Governor Mohammad Al-Hashel told the same committee that the cost of such a measure will be around KD 1.7 billion. The bill also stipulates that citizens who did not benefit from the waiving off of interest will be given a KD 1,000 grant which will be deposited in a fund called the family fund.

Rapporteur of the panel MP Safa Al-Hashem said the fund will be used to pay all the beneficiary's debt toward the state like electricity and water bills and others and the rest will be paid to the citizens. Those who have no debt will get the whole amount. Hashem did not provide figures about how much this will cost the state. The bill also allows retired people to seek bank loans equal to 40 percent of their monthly income. There has been no immediate government comment on the bill but Finance Minister Mustafa Al-Shamali had repeatedly said the government will reject any new legislation because it had already established a defaulters' fund to resolve the issue.

In another development, MP Saadoun Hammad sent around 60 new questions to Minister of Oil Hani Hussein as he prepares to grill the minister over a variety of alleged violations. The new questions deal with Kuwait Petroleum Corp (KPC) companies outside Kuwait, the reported sale of liquor at its facilities in foreign countries, their reported losses and the controversial promotions. Hammad had said he would grill the oil minister and is expected to be joined by MPs Nawaf Al-Fuzai and Abdullah Al-Tameemi.

The criminal court meanwhile yesterday sentenced controversial activist and member of the scrapped 2012 Assembly Mohammad Al-Juwaihel for three months in jail and fined him KD 2,000 for writing remarks on Twitter deemed offensive to the Mutairi tribe. Under the ruling, Juwaihel must go to jail immediately but he left the country just before the ruling was issued. Juwaihel later denied that he had fled the country. "I am in Poland to follow up the studies of my daughter, a genuine Kuwaiti," he said, promising to turn himself in once he was back in Kuwait.

The criminal court meanwhile will today resume the trial of former opposition MP Musallam Al-Barrak for remarks he made that were deemed offensive to the Amir at a public rally on Oct 15. A defense team of around 20 lawyers was formed to defend Barrak, who was detained for five days and interrogated over the charges which he denied.

? Kuwait Times 2013

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Source: http://www.zawya.com/story/Panel_approves_debt_relief_KWD1000_grant-ZAWYA20130129050838/

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