Friday , September 29 2023

Borrow to pay off your loan

This post has been read 45183 times!

Agence France Presse (AFP): Government spending in Kuwait will decrease by 4.8% at the expense of development and vital projects.

Ministry of Finance: Government agencies must pressure and rationalize spending, and work to contain the expected budget deficit. We will face the drop in the price of a barrel of oil by withdrawing from the general reserve and borrowing.

These are excerpts of what has been published.

On the other hand, MP Hamad Al-Matar, the representative of the Brotherhood in the National Assembly said: We agreed to increase the allocations for scholarship students, and to cover the costs of visas and health insurance for students in Britain.

MP Majid Al-Mutairi, representing the majority in the parliament called for adding housewives to the health insurance system (Afiya) and that every Kuwaiti woman, whether married, divorced, widowed or single, receives the same allowance as housewives, amounting to 600 dinars.

He added that the government must increase the cost-of-living allowance for employees from 120 to 240 dinars, and reduce the housing loan deduction rate from 10% of the salary to 5% and increasing the stipend for university students from 200 to 350 dinars per month and increasing the allowance for children from 50 to 100 dinars.

Other parties representing themselves also demanded an increase in the pensions of retirees to reach 2,000 dinars.

In a new blow to public money, with the continued submission of populist parliamentary proposals, the Parliamentary Legislative and Legal Affairs Committee approved a proposal to purchase bank loans owed by citizens, and to collect them by deducting 120 dinars from the monthly cost-of-living allowance. This means increasing the social allowance on the one hand, and deducting the increase in return for the bank loan installment, and this is a farce and crude manipulation of public money.

Many do not know that the total loans of citizens to banks, from which many will return to borrowing once the government pays their current loans to banks, is approximately 50 billion, and the majority of borrowers, according to the Central Bank records, do not have problems with repayment in the first place.

The university professor, human rights activist, Ibrahim Al-Hamoud, came out to us in support of the overthrow of the government or its purchase of citizens’ debts, and that dropping personal consumer loans is a form of social solidarity, and an implementation of the principle of bearing the burdens and public costs and dropping loans does not prejudice equality.

I hope those who have more understanding than me, and they are many explained to me the words of this academician, and how bearing public money of more than $77 billion, which represents the original amount plus interest, is a form of social solidarity, not sabotage of society, and an invitation to waste? How can looting of such a fabulous amount of public money be a form of solidarity and social solidarity?

The issue is ethical before it is financial. This is in addition to the fact that the state budget cannot afford all this luxury, and it is not reasonable for the government to borrow huge sums of money with very high interest rates from banks to pay off citizens’ loans.

That’s enough with this National Assembly and its extravagant deputies!

Note: Reference to my article “My story on Gustave Roussy” published a week ago, we would like to tell the reader that the Ministry of Health has agreed with “Gustave Roussy” to open horizons of cooperation in the field of cancer treatments, directly with Kuwait, i.e. between the Ministry of Health and the French hospital without a third party starting from the beginning of 2023.

This proves the correctness of the information of our aforementioned article.

e-mail: [email protected]

By Ahmad alsarraf

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