The Central Bank of Bahrain (CBB) has ordered all retail banks and financing companies to defer loan installments by six more months to the 30th of June 2022.
According to the statement, the move is part of the country’s intention to support the people out of economic pressure. It also aims to assist economic sectors, particularly those most affected by the pandemic.
The timely move also complements the efforts of the coordinating committee headed by His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister.
“The new decision that provides people with the option to postpone the outstanding loan installments forms part of continuing efforts to support economic activities in light of the continuation of the Global exceptional circumstances caused by Coronavirus. The decision was made after consultation and coordination with the banking sector. Their cooperation with individual and corporate clients contributed to strengthening the support for economic sectors with necessary liquidity in the past period.”
“These actions contributed to maintaining the growth path of economic activities and stability of various financial and commercial activities,” Mr. Al Maraj added.
Bahrain’s top banker also confirmed that the deferral imposes no extra cost on consumers. “Bahrain has issued directives not to impose any deferral fees, increase installments, interest or profit rates, provided that the interest rates applied by banks will remain in place on these loans during the deferral period,” as per the reports.
In October, CBB launched its new electronic cheque system, in line with the ongoing efforts towards digital transformation. The e-cheque system of CBB will complement the traditional paper cheques, a popular payment instrument in the kingdom.