UAE: More locals given 'get out of jail free' cards

Published November 13th, 2012 - 03:00 GMT
The UAE is increasing the scheme to assist UAE citizen with debt releif
The UAE is increasing the scheme to assist UAE citizen with debt releif

Joining an initiative launched by President His Highness Sheikh Khalifa Bin Zayed Al Nahyan to settle the debts owed by UAE citizens, four more banks operating in the country signed on agreements with the Debt Settlement Fund for UAE nationals

The agreements endorse mechanisms for settling defaulted loans owed by nationals against whom courts of law have passed judgments or cases are pending. Representing Nationals' Defaulted Debts Settlement Fund, the Under Secretary of the Ministry of Presidential Affairs and Deputy Chairman of the Higher Committee of the Fund Mohammed Abdullah Al Rumaithi signed the agreements with senior officials of the banks.

Officials from UAE Central Bank and Under Secretaries of various ministries were present at the signing ceremony. The new four banks that signed agreements yesterday included Sharjah Islamic Bank, Noor Islamic Bank, HSBC and Arab Bank for Investment and Foreign Trade.

This brings the total number of banks, which signed up to the initiative to 17 banks, both local and foreign. Rumaithi said that the Presidential decree granting the citizens necessary protection from criminal proceedings stipulated by the penal code for issuing security cheques to the lending banks has contributed to settle several debts in a fast manner. He thanked the banking sector for showing great amount of cooperation in reaching agreements to settle large number of default loans through a mechanism that combined partial write-offs with payments by the Fund.

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