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Business Home > Archive
 
Finance House to sign up to Debts Settlement Fund

Haseeb Haider / 8 March 2012

ABU DHABI - Abu Dhabi’s Finance House will be the ninth financial institution, which will sign up to the Debts Settlement Fund, an initiative launched by the President His Highness Shaikh Khalifa bin Zayed Al Nahyan to bail out Emirati loan defaulters.

Speaking to reporters, after the annual general meeting of the Finance House, its Chairman Mohammed Abdullah Al Qubaisi, said his company “will soon sign an agreement with Debt Settlement Fund.”

The UAE’s leading financial institutions Emirates NBD, National Bank of Abu Dhabi, Abu Dhabi Commercial Bank, Union National Bank, First Gulf Bank, Abu Dhabi Islamic Bank, Mashriq Bank and HSBC are part of the new debt settlement initiative launched in the end of January. 

“It will help people who cannot pay back their loans due to various reasons and we will also join this exercise to bail them out from their financial debt lock in,” he stated.

The Dh10 billion fund was set up by the President to ease the burden on the Emiratis with low incomes. The initiative would benefit 6800 Emirati defaulters of the personal loans of less than Dh1 million, be they in detention, pending trial or convicted, or settling their debts through instalment schedules set by the courts of law.

Those in prisons will be released and have their loans settled in accordance with specific settlement mechanisms, including deduction of 25 per cent from their monthly salaries, with undertakings not to borrow again until the loan is settled.

Shaikh Khalifa’s gesture follows the recommendation by the Supreme Committee of the Debts Settlement Fund for Citizens with Limited Income, chaired by Ahmad Juma Al Za’abi, Deputy Minister for Presidential Affairs.

Meanwhile, shareholders of Finance House approved 20 per cent dividend for the year 2011.

Abu Dhabi based, finance company recorded a net profit of Dh63.2 million, predominantly from core business activities.

Total assets registered a growth of six per cent year-on-year to reach Dh 3.31 billion.

In his address to shareholders, Mohammed Al Qubaisi, Chairman of Finance House, said: “We have earned profits for the seventh consecutive year and successfully faced challenging market conditions and significantly tighter regulatory requirements.”

He said that the political instability continued to haunt the MENA region in 2011 too, shaking confidence of investors and dampening business sentiments.

“We hope that the situation will change for better during the present year, restoring faith of investors completely and bringing robust growth in all sectors of business activities.”

“Our strong capital base, clear business strategies, well diversified asset book, combined with our capability to exploit various opportunities to our advantage, will take us to a new height of achievement in 2012”, the chairman concluded. 

 haseeb@khaleejtimes.com

 

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