Identifier
Created
Classification
Origin
06KUWAIT4682
2006-12-20 06:42:00
CONFIDENTIAL//NOFORN
Embassy Kuwait
Cable title:
PARLIAMENT VOTES 39-20 AGAINST WRITING OFF PRIVATE
how-toVZCZCXRO9580 PP RUEHBC RUEHDE RUEHKUK RUEHROV DE RUEHKU #4682 3540642 ZNY CCCCC ZZH P 200642Z DEC 06 FM AMEMBASSY KUWAIT TO RUEHC/SECSTATE WASHDC PRIORITY 7928 INFO RUEHEE/ARAB LEAGUE COLLECTIVE PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
C O N F I D E N T I A L KUWAIT 004682
SIPDIS
SIPDIS
NOFORN
STATE FOR NEA/ARP
E.O. 12958: DECL: 12/19/2016
TAGS: PGOV EAID ECON KU NATIONAL ASSEMBLY
SUBJECT: PARLIAMENT VOTES 39-20 AGAINST WRITING OFF PRIVATE
CONSUMER LOANS; IMPLICATIONS FOR FOREIGN AID
REF: A. KUWAIT 4612
B. KUWAIT 3826
Classified By: CDA Matt Tueller for reason 1.4 (d)
C O N F I D E N T I A L KUWAIT 004682
SIPDIS
SIPDIS
NOFORN
STATE FOR NEA/ARP
E.O. 12958: DECL: 12/19/2016
TAGS: PGOV EAID ECON KU NATIONAL ASSEMBLY
SUBJECT: PARLIAMENT VOTES 39-20 AGAINST WRITING OFF PRIVATE
CONSUMER LOANS; IMPLICATIONS FOR FOREIGN AID
REF: A. KUWAIT 4612
B. KUWAIT 3826
Classified By: CDA Matt Tueller for reason 1.4 (d)
1. (C/NF) Summary and comment: The Kuwaiti Parliament voted
December 19 against a controversial proposal to write off
citizens' private loans at an estimated cost to the
government of $27 billion. The proposal was strongly
supported by tribal parliamentarians, dividing the three
opposition blocs. Tribal MPs, with the notable exception of
the Islamic Constitutional Movement (ICM),almost unanimously
voted for the proposal, while urban MPs voted against it.
One of the most ardent supporters of the measure,
independent, tribal, Islamist MP Daifallah Bou Ramya,
strongly criticized the Government for "squandering Kuwait's
money on foreign aid" while "refusing to help (its) own
people." This criticism is likely to resurface if and when
Parliament votes on the $500 million Katrina aid package, the
$300 million in assistance pledged to aid Lebanese
reconstruction, and Iraq debt relief. The disunity of the
opposition blocs on this issue highlights the challenges they
face in coordinating their positions on specific issues,
given their members' often competing affiliations (ref B) and
the pork-barrel nature of Kuwaiti politics. End summary and
comment.
2. (SBU) On December 19, Parliament voted 39 to 20 with four
abstentions against writing off Kuwaiti citizens' consumer
loans. According to Minister of Finance Bader Al-Humaidhi,
the measure would have cost $27 billion. He added that of
the 465,000 citizens with consumer loans, only 2.1 percent
had repayment problems. As expected, all 15 Cabinet
Ministers, who serve as ex officio Members of Parliament
(MPs),voted against the proposal. Among elected MPs, the
vote was split primarily along urban and tribal lines. Of
the 25 tribal MPs in Parliament, 17 voted for the proposal
while only five voted against it, three of whom were from the
Islamic Constitutional Movement (ICM),the political arm of
the Kuwaiti Muslim Brotherhood. This urban-tribal divide was
most evident in the voting of the three opposition blocs,
which together form a majority in Parliament. All eight
members of the liberal, urban National Action Bloc voted
against the measure, but both the Popular Action Bloc (9 MPs)
and the Islamic Bloc (17 MPs) were divided. Ten members of
the Islamic Bloc, including all six ICM MPs and both Salafi
Islamic Grouping MPs, voted against the proposal, while six,
all with tribal affiliations, voted for it. The Popular
Action Bloc was evenly split with one abstention; the four
who voted for it all had tribal affiliations.
3. (SBU) One of the most ardent supporters of the measure
was Daifallah Bou Ramya, an independent Islamist MP from the
Mutran tribe. In a heated debate on the issue during the
December 18 session of Parliament, Bou Ramya criticized the
Government for "squandering Kuwait's money on foreign aid."
He continued: "You are helping Iraq, Lebanon, Jordan, and
Morocco and refusing to help your own people." (Note: Kuwait
has one of the most extensive cradle-to-grave welfare systems
in the world. End note.) After the proposal failed to pass,
he threatened to "grill" (i.e. interpolate) the Minister of
Finance over the issue. During the session, supporters of
the write-off demonstrated noisily in and around the
Parliament building until they were banned from the premises.
A small group of 75-100 then moved to the Seif Palace just
down the street, where they continued their loud, but
non-violent demonstrations. The issue has received
considerable media attention in recent weeks and inspired
some Kuwaitis to take out new loans in the hope that they
would soon be paid off by the Government.
********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s
Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
TUELLER
SIPDIS
SIPDIS
NOFORN
STATE FOR NEA/ARP
E.O. 12958: DECL: 12/19/2016
TAGS: PGOV EAID ECON KU NATIONAL ASSEMBLY
SUBJECT: PARLIAMENT VOTES 39-20 AGAINST WRITING OFF PRIVATE
CONSUMER LOANS; IMPLICATIONS FOR FOREIGN AID
REF: A. KUWAIT 4612
B. KUWAIT 3826
Classified By: CDA Matt Tueller for reason 1.4 (d)
1. (C/NF) Summary and comment: The Kuwaiti Parliament voted
December 19 against a controversial proposal to write off
citizens' private loans at an estimated cost to the
government of $27 billion. The proposal was strongly
supported by tribal parliamentarians, dividing the three
opposition blocs. Tribal MPs, with the notable exception of
the Islamic Constitutional Movement (ICM),almost unanimously
voted for the proposal, while urban MPs voted against it.
One of the most ardent supporters of the measure,
independent, tribal, Islamist MP Daifallah Bou Ramya,
strongly criticized the Government for "squandering Kuwait's
money on foreign aid" while "refusing to help (its) own
people." This criticism is likely to resurface if and when
Parliament votes on the $500 million Katrina aid package, the
$300 million in assistance pledged to aid Lebanese
reconstruction, and Iraq debt relief. The disunity of the
opposition blocs on this issue highlights the challenges they
face in coordinating their positions on specific issues,
given their members' often competing affiliations (ref B) and
the pork-barrel nature of Kuwaiti politics. End summary and
comment.
2. (SBU) On December 19, Parliament voted 39 to 20 with four
abstentions against writing off Kuwaiti citizens' consumer
loans. According to Minister of Finance Bader Al-Humaidhi,
the measure would have cost $27 billion. He added that of
the 465,000 citizens with consumer loans, only 2.1 percent
had repayment problems. As expected, all 15 Cabinet
Ministers, who serve as ex officio Members of Parliament
(MPs),voted against the proposal. Among elected MPs, the
vote was split primarily along urban and tribal lines. Of
the 25 tribal MPs in Parliament, 17 voted for the proposal
while only five voted against it, three of whom were from the
Islamic Constitutional Movement (ICM),the political arm of
the Kuwaiti Muslim Brotherhood. This urban-tribal divide was
most evident in the voting of the three opposition blocs,
which together form a majority in Parliament. All eight
members of the liberal, urban National Action Bloc voted
against the measure, but both the Popular Action Bloc (9 MPs)
and the Islamic Bloc (17 MPs) were divided. Ten members of
the Islamic Bloc, including all six ICM MPs and both Salafi
Islamic Grouping MPs, voted against the proposal, while six,
all with tribal affiliations, voted for it. The Popular
Action Bloc was evenly split with one abstention; the four
who voted for it all had tribal affiliations.
3. (SBU) One of the most ardent supporters of the measure
was Daifallah Bou Ramya, an independent Islamist MP from the
Mutran tribe. In a heated debate on the issue during the
December 18 session of Parliament, Bou Ramya criticized the
Government for "squandering Kuwait's money on foreign aid."
He continued: "You are helping Iraq, Lebanon, Jordan, and
Morocco and refusing to help your own people." (Note: Kuwait
has one of the most extensive cradle-to-grave welfare systems
in the world. End note.) After the proposal failed to pass,
he threatened to "grill" (i.e. interpolate) the Minister of
Finance over the issue. During the session, supporters of
the write-off demonstrated noisily in and around the
Parliament building until they were banned from the premises.
A small group of 75-100 then moved to the Seif Palace just
down the street, where they continued their loud, but
non-violent demonstrations. The issue has received
considerable media attention in recent weeks and inspired
some Kuwaitis to take out new loans in the hope that they
would soon be paid off by the Government.
********************************************* *
For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s
Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
********************************************* *
TUELLER