KUWAIT CITY, Jan 3: MP Askar Al-Anazi has presented a bill on the formation of a committee which will be tasked to discuss files of loans granted to citizens and to ensure compliance of local banks with the instructions of the Central Bank of Kuwait (CBK) regarding interest rate.
In the explanatory note of the bill, the lawmaker stressed the need to form a committee that will look into files of loans granted to citizens who suffered from injustice when banks charged high interest rate on loans obtained from 1998 to 2016 such that the interest exceeded the loaned amount.
Article One of the bill stipulates formation of a committee to study these loans through a decision issued by HH the Prime Minister to make sure that the banks did not violate the instructions and decisions of the Central Bank and the law on interest rate from 1998 to 2016.
Article Two states the committee should be headed by a judge at the Court of Appeals and shall act on behalf of the representative of the Ministry of Finance while the members are from the Central Bank of Kuwait, Kuwait Accountants Association and Union of Kuwaiti Banks.
Article Three stipulates duties of the committee such as analysis and investigation of loan files and to ascertain the legality of interest rates charged by banks. The committee is allowed to seek the assistance of any person deemed qualified for this purpose or form subcommittees to assist in carrying out its duties. This person or the subcommittees can go to the banks’ headquarters to check necessary files.
Article Four states that after the completion of its work, the committee shall notify the erring banks about the results. The banks have the right to object within 15 days, after which the decision of the committee becomes final and enforceable and cannot be challenged before any judicial body.
Article Five states that the committee shall, upon completion of its work, submit its report to HH the Prime Minister to take the necessary measures to restore the rights of beneficiaries.
Article Six stipulates that the penalty which will be imposed on erring banks will be in accordance with Law No. 32/1968 on the currency, Central Bank of Kuwait and organization of banking business.
Meanwhile, MP Osama Al-Shaheen disclosed through his Twitter account that he visited Wednesday MPs Waleed Al-Tabtabaei and Jamaan Al-Harbash as well as a number of young people detained at the Central Prison for storming the National Assembly building. He affirmed they are in good condition and are looking forward to a beautiful future for their beloved country.
By Abubakar A. Ibrahim Arab Times Staff