Sheikh Sabah Al-Ahmad Al-Sabah
Sheikh Sabah Al-Ahmad Al-Sabah

Droping loans in Kuwait hashtag # dropping_financing_day_418 Twitter is at the forefront where hundreds of thousands of Kuwaiti people want their government to immediately initiate a process to drop bank loans, as they have organized electronic campaigns to pressure the government, which have been issued demands over the past years.

This comes in light of some Kuwaiti government saying that the volume of wanted persons for Kuwaiti courts has reached about a quarter of a million Kuwaitis in estimates that are not denied or confirmed by the Kuwaiti government, because of their inability to pay installments for loans they receive from Kuwaiti banks, while huge amounts have been installed on the origin of these loans, This is what Kuwaiti banks consider as "interest due" due to late payment.

In a related context, the government in Kuwait currently rejects categorically reject calls to drop the loans, which, according to semi-official estimates, cost about $ 30 billion USD. Official circles say that this number would shake the Kuwaiti economy, and cause a negative shock to the Al-Ajyal Fund, in which the government is deposited monthly. As a kind of "future savings" for future Kuwaiti generations, except that one of the official justifications that the government promotes to reject calls to drop loans is the "absence of justice" between those who received loans, and those who did not take any loans.

In that regard, he was joined by the popular campaign to drop the loans. Members of the Kuwaiti parliament presented bills to demand the state to purchase the debts of borrowers who defaulted, and who were chased by judicial procedures that banks moved against them, as the Kuwaiti government had previously in 1991 to drop loans from citizens after the liberation of Kuwait from The Iraqi invasion due to the difficult economic conditions that Kuwaitis lived in during the seven-month occupation period.

Economists reveal that the circumstances are completely different, the volume of the amounts projected at the time was not more than one billion, and that the number of borrowers was no more than fifty thousand borrowers, except for the government’s decision at the time was for the purposes of helping banks to overcome financial distress, with Kuwaitis unable to pay their loan installments due to the occupation.

On the other hand, the experts warned that the government surrendered to the increasing public pressure on the idea of ​​dropping loans, and also warned against increasing the pace of borrowing from banks in the next stage in order to curtail them, which may exacerbate the money that the state will waste to drop the loans, which may lead to the size of the loans dropped to Horrific astronomical numbers, which threaten the economic situation in Kuwait.