Call for calm over pension fund reforms

 Bahrain Chamber (BCCI) chairman Sameer Nass has called on executive and legislative authorities to be patient and listen to the opinions of the business community regarding the “pension funds” amendments.

He warned of negative effects in the future that may affect cash flow in the market, which leads to a state of economic stagnation due to a decrease in the volume of liquidity in circulation.

He urged to consider accelerating the pace of recovery for small and medium enterprises that are still suffering from the negative repercussions of the pandemic as the proposed amendments to the draft law particularly impact them, which may affect their liquidity and funding levels.

He said most business owners in this growing sector are in an urgent need of higher levels of liquidity and financing to stimulate production and expansion of local investments.

“The proposed amendments may hinder efforts to achieve this desired goal, as they will increase the financial burden on business owners,” he noted.

“Cash flow is an essential element to ensure business safety and continuity and maintain development rates in local markets.”

Stressing the need to stop the bleeding of social insurance funds, he said the reforms will help increase the life span of the funds without affecting the operational efficiency of companies and institutions operating in the private sector being the main catalyst for national economy.

He reiterated the chamber’s support for all government measures and steps aimed at achieving economic growth and financial sustainability in accordance with His majesty King Hamad’s directives.

Source: https://www.gdnonline.com/Details/1037868/Call-for-calm-over-pension-fund-reforms