Authorities decide to involve local banks in the real estate mortgage
Move to solve housing problem
KUWAIT CITY, May 24: The authorities concerned with solving the housing problem have decided on involving local banks in real estate mortgage because they are not convinced that the Kuwait Credit Bank alone can meet the growing number of housing applications, reports Al-Shahed daily quoting sources.
They explained that the names of those on the waiting list have exceeded 110,000 while the budget of Kuwait Credit Bank to finance the housing applications is pegged at KD 1 billion. This means it cannot fund more than 12,000 applications at a time. There have also been talks of a plan to deliver 30,000 plots in Al-Mutla City, the distribution of which is earmarked for next year.
The sources also revealed about a plan to involve banks in the process of financing the owners of these plots by approving mortgage due to its high liquidity.
They indicated that majority of the members of the committee are convinced that real estate mortgage is one of the appropriate financing tools for financing from commercial banks.
The sources stressed about an agreement with banks concerning the value of decline in the property in the event of default by the owner on payment, which may reach 30 percent of the total assets in addition to ban on sale of the property in the auction in case of non-payment.
The Public Authority for Manpower (PAM) issued Tuesday a decision banning employees from working in open locations from 11:00 am to 4:00 pm starting from June 1 until Aug 31, 2017.
In a press statement, acting Director General of PAM Abdullah Al-Mutauteh explained the decision is in line with Private Sector Labor Law No. 6/2010 and the international agreements on protecting the health of workers.
He pointed out the decision covers all those working in open areas as their condition becomes difficult due to harsh weather conditions during summer.
He emphasized the need for employers to abide by the law to avoid legal repercussions, asserting the authority’s inspectors will be roaming around in various areas to guarantee strict compliance with the law.