Loan defaulters ‘ also deserve a second chance’

AL HABTOOR TO HELP INMATES WITH BAD DEBT AND THOSEWHOCAN’T PAY ALIMONY

People imprisoned in Dubai over bad debts due to failed businesses or inability to pay alimony in divorce settlements will be given a second chance at life through a new initiative called ‘ Reunion’ launched on Monday.

‘ Reunion’ aims to assist prisoners in Dubai who have been detained over default on loans or unpaid alimony. The move was initiated by Khalaf Ahmad Al Habtoor, founding chairman, Al Habtoor Group, who aims to provide financial aid to settle the debts of certain prisoners so they can be released and secure a job to provide for their families.

The details of the initiative were unveiled in a meeting with Major- General Khalil Ebrahim Al Mansouri, Assistant Commander- in- Chief for Criminal Investigation at Dubai Police, at the Al Habtoor Group head office on Monday.

Al Habtoor said detention is not always the best solution. “A child needs a father at home. A wife relies on her husband to be a role model or to provide for the family. In cases of alimony, a father who is in prison due to lack of funds cannot provide for his family if he is in jail. He needs a job to earn a salary so he can meet his obligations,” Al Habtoor said.

“I am launching the ‘ Reunion’ initiative because I believe people should be given a second chance so long as they are disciplined and are honest human beings with sound business practices. Decisions will be taken on a case- bycase basis,” he added.

Specific details as to how much financial aid will be released were not announced, however.

Al Habtoor said circumstances may not be conducive for a business to flourish that can result in the lack of liquidity and inability to pay what is owed.

He said learning fromone’s failures as much as from successes is key in every business. Doing so makes one stronger and even more determined to succeed.

Al Habtoor emphasised that it is not only the defaulter who should learn from the past mistakes. “Banks also have to take their share of responsibility. It is imperative that banks do not overlend. I urge them to conduct a thoroughduediligencewith every loan application.”