G-Man
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DUBAI, United Arab Emirates -- Hussein Ali Mubarak sits in prison, surrounded by murderers and burglars. His crime: defaulting on his bank loans.
More than 1,200 people in Dubai's central jail -- about 40 percent of the prison population -- have been convicted of not repaying money borrowed from banks so they could get married, buy a car or house, or invest in the stock market.
Jailing debtors -- a practice more common in 18th-century England -- illustrates the downside of this Persian Gulf city-state's frantic economic boom.
Surrounded by so much oil and real estate wealth, many residents succumb to the temptations of a lifestyle they cannot afford. Banks are willing to give consumer loans with virtually no collateral, and because Dubai lacks a central credit-check authority and a personal bankruptcy court system, it's easy for people to get into financial trouble.
Last year, banks here granted $43 million in personal loans -- many with only an undated, blank check as collateral.
The case of Mubarak, a 28-year-old Emirati, is typical. He was working 12-hour shifts as a crane operator in Dubai's port when he took his first bank loan to buy a car and furniture. Even though he fell behind in the payments, he still managed to get two more loans from two different banks, each bigger than the one before.
He paid off one of the loans but stopped making payments on the other two. After he ignored court summons, the bank deposited the blank check he had presented as his sole collateral. The check bounced and he was sentenced to three months in jail.
He'll stay there longer if no one steps forward to pay his $44,700 debt.
http://findarticles.com/p/articles/mi_qn4188/is_20070611/ai_n19291850/
More than 1,200 people in Dubai's central jail -- about 40 percent of the prison population -- have been convicted of not repaying money borrowed from banks so they could get married, buy a car or house, or invest in the stock market.
Jailing debtors -- a practice more common in 18th-century England -- illustrates the downside of this Persian Gulf city-state's frantic economic boom.
Surrounded by so much oil and real estate wealth, many residents succumb to the temptations of a lifestyle they cannot afford. Banks are willing to give consumer loans with virtually no collateral, and because Dubai lacks a central credit-check authority and a personal bankruptcy court system, it's easy for people to get into financial trouble.
Last year, banks here granted $43 million in personal loans -- many with only an undated, blank check as collateral.
The case of Mubarak, a 28-year-old Emirati, is typical. He was working 12-hour shifts as a crane operator in Dubai's port when he took his first bank loan to buy a car and furniture. Even though he fell behind in the payments, he still managed to get two more loans from two different banks, each bigger than the one before.
He paid off one of the loans but stopped making payments on the other two. After he ignored court summons, the bank deposited the blank check he had presented as his sole collateral. The check bounced and he was sentenced to three months in jail.
He'll stay there longer if no one steps forward to pay his $44,700 debt.
http://findarticles.com/p/articles/mi_qn4188/is_20070611/ai_n19291850/
(and always on the backs of the less fortunate working class)
Muhammads they are taking themselves out.....:
