Rescued Aussies owe almost $600k

THE Federal Government is pursuing repayment of almost $600,000 in emergency no-interest loans made to Australians who were stranded overseas.

It is also trying to recover almost $175,000 in loans to Australians when they were in foreign jails.

Emergency loans are made to Australians without money for return airfares or who get stuck with medical or accommodation bills.

The prisoner loans are made to Australians, mainly in Third World jails, so they can buy food, medicines, toiletries or other essentials.

Loans can also be made when an Australian national's welfare is under threat.

All loans are made on the basis no alternative source of funds is available, including from family and friends, and recipients are required to sign undertakings to repay the loans once back home, or freed from prison.

But a number who do not repay it are now being pursued through court action.

Money is recovered by instalment or by Centrelink deductions. People who have not repaid loans can be refused passport renewals.

Just over $1.3 million in travellers' emergency loans have been paid over the past four years, according to data from the Department of Foreign Affairs and Trade, but only $722,000 has been recovered.

"The timing of repayments varies depending on circumstances and capacity to repay," a DFAT spokesman said. "The department has a robust system to pursue debts, including regular follow-up through letters and phone calls."

There were 60 Australians in overseas jails last year who received $63,947 for supplementary food, medications or other essentials.

"The loan is fully repayable to the Government following the prisoner's release - outstanding prisoner loans, for prisoners who have been released and are now repaying, total $174,466."

Countries in which Australians are eligible for aid under the prisoner loan scheme include Argentina, Burma, Cambodia, India, Indonesia, Kenya, Laos, Pakistan, Thailand, Vietnam, Zimbabwe, among others.

mark.dunn@news.com.au

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