Shopping Blog
Advertising
Archives
Classifieds
Giveaways
Homepage
RSS Feed
Search
Twitter
Web Feeds









Categories
Auctions
Auto
Baby
Books
Celebrity
Charity Products
Children's Products
Collectibles
Entertainment
Fashion
Fashion Accessories
Fragrances
Games
Gourmet
Green
Hair Care
Handbags
Health
Holiday Decorations
Holiday Gift Ideas
Holiday Shopping
Home
Jewelry
Makeup
Mother's Day
Movies
Music
Pampered Pets
Photography
Plastic Surgery
Real Estate
Services
Shoes
Shopping Advice
Shopping Tools
Sports and Fitness
Tech
Toys
Travel
Unusual Auctions
Virtual Worlds
Weddings
Weight Loss



Add to MyYahoo

Add to MyMSN

Add to Bloglines

Add to NewsGator



Posts with tag: kuwait | Return to ShoppingBlog.com Homepage

Kuwait Considers Consumer Debt Bailout for All Citizens

The parliament of Kuwait is pondering a unique response to the recession: it is considering a bailout of all its consumer debt. The $21 billion proposal would work like this. The government would buy all consumer loans from the banks: car loans, credit card loans, mortgages, the works. The interest will be written off and everyone will be given a repayment schedule to pay of the principal. The banks are paid. People won't go bankrupt over outrageous interest charges. And the government presumably will be paid back the principal amount. The plan only applies to Kuwaiti citizens, not to residents. Government officials don't like the plan, and Parliament has been shut down several times because of the issue.
Lawmakers in Kuwait, which is richer per capita than Germany, are demanding a government bailout of all consumer loans, reviving a power struggle that's already shut down the assembly twice in 18 months.

At least half of the 50 elected lawmakers say they'll back a plan for the government to buy all 6 billion dinars ($21 billion) of bank loans taken by Kuwaiti citizens to buy homes, cars, holidays and other purchases, write off interest payments and reschedule the rest. The government opposes the bailout. Parliament convenes on Oct. 27 after a four-month break.

*****

The row has dominated the local media during parliament's recess, signaling a fresh dispute between Kuwait's government, appointed by the emir, and elected lawmakers who are seeking broader powers and have blocked key investment programs in the past. Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah last dissolved parliament in March saying relations with the legislature were "ruined."

*****

Repayment problems escalated in 2006 as the central bank raised interest rates as high as 6.25 percent to curb inflation. Legislators have criticized the government and central bank for failing to regulate lending properly. "I will not hesitate to use any constitutional tool to pass a bill for purchasing and rescheduling citizens' consumer loans," lawmaker Daifallah Bu Ramiah said in a phone interview.

Bu Ramiah said at least 100,000 Kuwaiti borrowers face legal charges after falling behind on debt repayments. The government says that's exaggerated. A total of 278,000 Kuwaitis held consumer loans at the end of last year, according to Kuwait-based Al-Shall Economic Consultants. There's no official data on defaults.
It's an unusual idea -- and one that is being watched closely by other nations. Currently, only about 1/3 of the people living in Kuwait are actually citizens. In many parts of the Middle East, defaulting on a debt can lead to serious legal consequences. In Dubai, a defaulting debtor can end up in prison.

Posted on October 25, 2009
Permalink | Subscribe | | | Comments (View)



The Writers Write Lifestyle Network
Bloggers Blog
Crafters Craft
Drivers Drive
Fantasy SF Blog
Gamers Game
Health News Blog
HowToWeb.com
The IWJ Blog
Lovers Love
Media Cynic
Petosphere
Pleasant Morning Buzz
Readers Read
Science News Blog
Shopping Blog
Singers Sing
Surfers Surf
Traders Trade
Video Nacho
Watchers Watch
Workers Work
The Write News
Writer's Blog

Sales & Coupons
ShoppersShop.com's Sales & Deals section includes coupons, sales and free shipping offers.


Search ShoppingBlog.com





Add to Google













www.shoppingblog.com

Copyright © 2002-2009 by Writers Write, Inc. All Rights Reserved.