Banks warned against wage funds misuse

Banks have been warned against misusing funds deposited by the government to pay wages of Bahraini employees in the private sector for April, May and June.

The Central Bank of Bahrain (CBB) yesterday issued a circular warning banks against using the funds to settle companies’ financial obligations. Also the money must not be subject to a freezing order or provisional seizure, the CBB said.

The wage payment is part of eight initiatives under a BD4.3 billion financial stimulus package announced by the government to offset the impact of the Coronavirus Disease (Covid-19) on businesses.

It aims to provide the necessary liquidity to the private sector to deal with the effects of the current situation, preserve private sector growth and bolster its vital role in supporting the national economy.

Meanwhile, Social Insurance Organisation (SIO) chief executive Eman Al Murbati said all Bahraini employees in the private sector registered with SIO until March 16 will benefit from the wage support scheme.

The government will tomorrow start depositing payments in bank accounts of more than 9,000 private institutions, she said.

Companies that failed to register within the deadline of April 13 will receive payments at a later stage once SIO works out another mechanism to cover all private companies, she told our sister paper Akhbar Al Khaleej.

The payouts cover wages and monthly allowances for employees registered with SIO in addition to annual bonus, if any, with the amount not exceeding BD4,000, she said.

Source: http://www.gdnonline.com/Details/799957/Banks-warned-against-wage-funds-misuse