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Sun 27 Jun 2010 07:45 PM

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Kuwaiti parliament vote down consumer debt move

Bill was refused by the cabinet after it was passed by parliment in January.

Kuwaiti parliament vote down consumer debt move
BAILOUT BILL: Kuwaits parliament failed to revive a $22.9bn bailout bill for indebted citizens, which the government had already rejected. (Getty Images)

Kuwait's parliament failed on Sunday to revive a 6.7 billion dinar ($22.98 billion) bailout bill for indebted citizens which the government had already rejected.

The house voted against discussing the bill to reschedule consumer loans and write off interest owed by citizens.

The bill passed in January despite strong opposition by the cabinet which later refused it and returned it to parliament.

The government believes the bill threatens the stability of the Gulf Arab state's banks and includes legal violations.

In 2008 the government bowed to parliamentary pressure and increased to $1.9 billiona a state fund aimed at helping citizens to repay consumer loans.

Lawmakers have a history of demanding citizen debt write offs and see it as the right of Kuwaitis to enjoy their country's oil wealth, especially when oil prices are high.

Kuwait is the world's fourth largest oil exporter. (Reuters)

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Each Kuwaiti is in debt to about $100,000 or $500,000 or more per family. Now what ?

M Mansour 10 years ago

The debt figure per national of $100k is wholly inaccurate. Central Bank introduced credit restrictions a few years back (40% of base, Kd15k max for consumer etc..) which makes it almost impossible to be authorised this amount. Perhaps the reader is referring to the gov't interest free social housing loan. I am a Kuwaiti who does not owe even 10% of the $100k stated. Please let us remain impartial and factual.