The number of cases for non-performing assets of banks especially loan defaults is viewed as bordering on crime. The banks from both private and government sectors to lend such massive loans to high-risk individuals or organizations are considered as a degenerate practice or criminal misconduct. This story is about a steward from the airline industry.
A former flight attendant from Etihad Airlines convicted up to three years jail time in UAE as he has defaulted his loan payments which he has taken in December 2017 when the bitcoin hit an all-time high of $ 20,000. He has been granted a loan of $100,000 with an approximate monthly installment of $2,230. As Crypthomie reveals the pandemic situation lead him to lose his job making him unable to continue paying his loan.
Investing after the all-time high
The post on Crypthomie’s showing his sad story vent semi-viral on the crypto community. He has invested his loan on bitcoins and other altcoins which later lost in value making a loss of nearly 85% in total investment value.
“It was my first speculative investment. I think it’s an age where we’re still unconscious and take a lot of risks if we don’t have big responsibilities like a kid or bills to pay.”
UAE Laws and Jail time
Unlike the western world, UAE considers and treat debt-related matters as criminal cases rather than a civil one. A bad debt may lead a sentence up to three years in jail and even more, if the debt repayment goes further unpaid.
Is fleeing an option?
When the post went viral most Reddit users suggested he flee UAE.
“Get out of that country and start a new life with new names and identities dude,” said user _Neev.
“Last time I checked, Abu Dhabi had ocean access. I’d be learning to sail real quick in your shoes,” said maxcoiner.
Anyway, the attendant replied to the commenters “We have a travel ban on us as the bank opened a case. We are stuck until we can pay but will be jailed within a few weeks if we don’t send anything.”