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FINANCIAL NEWS
Proposed bill may cancel loan interest rates in Kuwait
22 Feb 2012
(MENAFN) Kuwaiti government is mulling canceling interest rates on banks loans and pay its citizens USD3,600 to help nationals pay their debts, Kuwait Times reported.
Five MPs including the parliament speaker Ahmad Al-Saadoun submitted the proposed bill to the national assembly calling for the government to scrap millions of dollars worth of interest and give handouts to the population, the local media said.
The initiative follows a number of measures by the government to better bolster the living standards of the population after a spate of protests by public sector workers in the country last year.
The draft law, which may cost the government USD7.2 billion, includes local banks rescheduling citizens’ debts and abandoning interest payments, plus, the value of the loan does not exceed USD251,6, and each installment does not exceed 30 percent of the debtor’s income.
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