What Am I Missing Here?
“Yes to the waiver of loans” read the banners of 50 citizens rallying in silent protest in front of Parliament to request a bailout of private debt. What am I missing here? As I understand it, these are grown-up people who have taken out loans, many loans greatly out of proportion to their income, and who now don’t want to pay the loans back. Am I understanding this correctly?
So who pays? If the loans are waived, who pays the banks? If a loan is waived, does that person forfeit the right to ever borrow again? And what discourages a person whose repayment is waived from making the same mistake again, borrowing more than they can re-pay?
And who is making these huge loans to citizens with limited salaries? Why would they give a loan that the borrower could only repay with hardship? Are there laws governing banking practices in Kuwait?
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Lots of questions, but I have one comment here.. If you remember, after the invasion,. The government waived all loans prior to the invasion.. I guess some people want the government to do it again.. so they can keep taking loans for the third time, and wait for few years to get them waived again.. welcome to the spoiled people’s mentality..
Welcome. I’ve enjoyed reading your comments elsewhere, am honored by your visit.
Oh. Huh, Yeh . . . the invasion. That makes sense. But in the invasion, many people suffered enormous losses, losses they had no control over. Acts of war . . . .I can understand how a compassionate government with the capacity and income would help the citizens – it makes sense in terms of economic recovery and national unity, in those circumstances.
But now?
the problem here is that
a) theres no credit rating thingy that all the banks are connected to yet. so you can default at NBK and pop across the road to burgan and get a loan all within 5 minutes.
and
b) most kuwaitis are in government jobs, with steady salaries and jobs for life. youd really ahve to mess up big time to get fired. so their salary is practically guaranteed especially since the majority of govt workers could not flee the country and survive outside.
as for the banks being worried about loaning to these people, most banks require you to have your salary transfered to an account in their bank, whereby they automatically deduct what you owe when your money comes in.
a friend of mine working at the customer care call centre of a bank quit his job cos he got fed up with people calling once a month demanding to know what happened to their salary cos they forgot the extent of the loans they have and thus the size of the banks deductions 😛
there it is in a nutshell 😛