In the Finance report, in which the majority approved the proposal to purchase citizens’ loans, the opinion of the Central Bank of Kuwait emerged, which confirmed that, according to the loan portfolio data, there are 515 thousand borrowers with a total of 14.6 billion dinars, and that the default rate in paying the installments on loans is about 2.5%.
The bank explained that the repayment of loans is from the state’s general reserve, and this hypothesis cannot be worked on due to the high cost it bears on the state, in addition to the lack of liquidity in the general reserve.
As for the proposal to request the disbursement of a quarter of the net retirement pension in a manner that does not exceed 28 months in advance in an installment of 60 dinars, the General Organization for Social Insurance said that the proposal for a law places a longer period for repayment of up to 14 years on the shoulders of pensioners, and is not in line with the financial situation. For insurance as it is a high financial cost if applied, and that the current law is better and does not increase the burden on pensioners, reports a Arabic daily.
In the same context, the scene did not differ much in the report of the Housing Committee, in which it was stated that the General Authority for Investment rejected the proposal for a law regarding the establishment of companies to implement housing cities with a number of reservations about the articles of the proposed law, due to its lack of achieving the vision of sustainability of the right to housing and its contradiction with a number of laws in force. In addition to increasing the financial burden on the state budget.
The authority emphasized that the proposal does not address the financing mechanism, and contradicts the state property law with regard to the period specified for land usufruct rights, and constitutes a burden on the general reserve by forcing it to finance without a ceiling for the company’s capital, and that these projects are not commercially feasible, which loses the purpose of the law.
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