Abu Dhabi: Expatriates currently in jail for defaulting on debts are not being pardoned, a top official said on Monday.
The Presidential orders to help defaulters pertain to Emiratis only, Ahmad Jumaa Al Zaabi, deputy minister of Presidential Affairs told Gulf News.
Local reports that said on Monday that expatriates are being included in those orders are not true he added. “There is no relaxation or debt waiver for expatriates,” he explained.
Earlier, Al Zaabi said that 332 citizens were released following cases of bounced security cheques. He described these cheques as “swords on the necks of borrowers which lead to prison in the case of defaults regardless of the amount being paid.”
A source at the Federal Supreme Court clarified that security cheques can no longer be used unjustifiably against defaulters. “However, these cheques can be used as an evidence on a crime and to protect the rights of lenders in the event a court ruling is handed down against defaulters.”
According to UAE Central Bank figures, the presented cheques for January 2012 were 2,423,441 with an amount of Dh99,550,197,208.00 compared to 2,416,448 for the same period in 2011 worth Dh91,496,613.00.
“The percentage of returned cheques of the total cheques presented for January 2012 was 5.4 per cent and the percentage of the amount of returned cheques of the amount of total cheques presented was 5.27 per cent,” according to statistics of the Central Bank.
