Liquidity fund starts receiving loan applications

MANAMA: The liquidity fund started receiving requests for financing from big companies and small and medium enterprises (SMEs) yesterday.

The maximum term of the credit facilities, which attract an interest rate of 2.5 per cent per annum, will be three years. The maximum financing for big companies will be BD1 million and SMEs BD250,000.

Big companies, defined as those whose annual turnover is BD3m or more, will be financed through one of the participating banks that include the National Bank of Bahrain, Bank of Bahrain and Kuwait and Bahrain Islamic Bank.

To qualify for financing, a company must meet certain conditions such as having an active CR, conducting business in Bahrain for five consecutive years, having Bahraini majority shareholders and having audited financial statements for four previous financial years, including 2018. A company must also have a positive net worth and must have a positive profit margin in three years of the past five-year period.

SME, defined as those with an annual turnover of less than BD3m, will be financed through the Bahrain Development Bank. To qualify for financing, an SME must have an active CR, Bahraini majority shareholders, conducting a sustainable business in Bahrain, not having applied for restructuring or liquidation in accordance with the bankruptcy law, in addition to having financial statements for the financial year 2018, and a positive profit margin for one year during the past three years.

Applications for large companies will be received through one of the designated four branches of the NBB – the main branch, Seef Mall branch, Atrium Mall branch or Istiqlal Highway branch. SMEs can apply through one of the following branches of the BDB: Sitra Mall branch, Riyadat Mall branch, Diplomatic Area branch or Industrial Hidd branch.

For enquiries and further information about applying for finance through the liquidity fund, call the hotline number 17103105.

The liquidity fund was established pursuant to the directives of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, during the 2019 Government Forum. The BD100m liquidity fund is to support private sector companies overcome liquidity difficulties.

Source: http://www.gdnonline.com/Details/703210

 

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