Proposal to defer bank loans

AN urgent proposal to defer all bank loan instalments until the end of the year for Bahrainis and local businesses will be voted on during Parliament’s session today.

It has been proposed by five MPs, led by Bahrainisation Committee chairman Ebrahim Al Nefaei.

The current loan deferral option expires on June 30.

The Central Bank of Bahrain (CBB) has also been urged to encourage the government to back the proposal so arrangements could be made with banks.

Mr Al Nefaei said the aim was to allow people, businesses and the economy to ‘properly recover’ from the effects of the Covid-19 pandemic which were still negatively affecting them, despite positive indicators as the economy rebounds with the easing of health-related restrictions.

Global repercussions of the Russian invasion of Ukraine are also causing concern.

“Deferrals have helped the market stand, refresh and allow cash and business to flow, However, our concern is that the moment its off, people will sit at home and limit their spending,” said Mr Al Nefaei.

“There is a risk of a huge setback after all the efforts made over the past two years.”

Loans were deferred from March until August 2020 without bank charges.

They were deferred a further four more times under optional deals in which interest was calculated from August 2020 until June this year.

Source: https://www.gdnonline.com/Details/1049261/Proposal-to-defer-bank-loans