BD4.8bn loans

The total personal loans provided to citizens by retail banks in Bahrain amounted to BD4.83 billion by January end, of which BD4.48bn was provided by local banks and BD350.7 million by foreign banks, Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa has said.

He said the Debt Service Ratio, or DSR, is calculated based on the value of the total installments paid by the borrower to all his creditors registered with the Bahrain Credit Reference Bureau “Benefit Company” on his total salary when applying for any new loan.

The legislation specifies that this ratio does not exceed 50 per cent, unless the customer earns a salary of BD3,000 or more, and the percentage of instalments on the average monthly salary is about 43.7pc., he added.

He was replying to questions by MPs Ammar Qambar and Ahmed Al Ansari regarding the value of citizens’ loans provided by local banks.

Source: https://www.gdnonline.com/Details/1049076/BD48bn-loans