Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

An Interesting way of dealing with debt

  • 05-02-2012 11:55am
    #1
    blackdog2
    Registered Users, Registered Users 2 Posts: 852 ✭✭✭


    http://gulfnews.com/news/gulf/uae/government/khalifa-orders-debts-of-6-830-emiratis-to-be-cleared-1.971102
    Emiratis who are in prison will be released while the debt is being settled.
    The debts will be settled through a fund with a capital of Dh 10 billion that was set up by orders previously issued by Shaikh Khalifa. The fund aims to settle the loans of Emiratis with limited income through a mechanism that will see in-debt Emiratis pay 25 per cent of their monthly salary.
    The mechanism was implemented through the fund’s coordination with banks. In-debt Emiratis will also have to sign an undertaking stipulating that they may not apply for another loan until the current ones have been settled.
    Fund
    The fund will examine statements provided by the banks that provided the loans, and then will settle a portion of the debt before adopting the aforementioned mechanism in which in-debt Emiratis will repay the loan with 25 per cent of their monthly salaries. Interest accumulated on the loan will be excluded from payment.
    The order to settle the debts was made after a proposal was forwarded to Shaikh Khalifa by the Higher Committee of the fund, which is chaired by Ahmad Juma Al Za’abi, Deputy Minister of Presidential Affairs.

    Well, what do people here think?

    Personally, I feel this kind of scheme would kickstart consumer spending. The upper limit to the amount of debt means that those who were completely and utterly reckless(i.e. property developers) still have to deal with current legislation, while getting money moving in the economy again. It would probably be quite a cheap way of doing it compared to more austerity.


Comments

  • #2
    Jaafa
    Registered Users, Registered Users 2 Posts: 2,621 ✭✭✭Jaafa


    What about people who are so far in debt that 25% or even 100% of their current income wouldn't cover the debt?


  • #3
    blackdog2
    Registered Users, Registered Users 2 Posts: 852 ✭✭✭blackdog2


    Jaafa wrote: »
    What about people who are so far in debt that 25% or even 100% of their current income wouldn't cover the debt?

    Well personally I think that 25% is a significant penalty imposed, but at the same time it allows for that person to live! (Unless we are talking about people on the dole etc, I think this makes sense for people earning around the average industrial wage)


Advertisement