HSBC bank in the United Arab Emirates has elected to participate in a plan to settle or write off debts owed by UAE citizens. Until now the ability for people to deal with their debts in the UAE without going to jail, has been limited.
And while this approach to assisting people with problem debt in the UAE is a good first step, it omits providing help to non-UAE people.
The Central Bank said that since the plan was launched last year, 439 people have settled their debts with assistance from the fund.
HSBC, along with Standard Chartered Bank are the two international banks that have elected to participate in the UAE debt settlement fund.
For UAE citizens that qualify for help under this program the participating banks will write off up to half of the debt owed. The remaining money due will be paid from the Nationals’ Defaulted Debts Settlement Fund.
People that participate in this program pay up to 25 percent of their monthly income in interest-free payments until their obligation to the Nationals’ Defaulted Debts Settlement Fund is repaid.

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