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The move will strengthen national efforts to overcome the economic challenges of Covid-19
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The option to defer loan repayments applies to individuals and companies until Dec 31, 2021
The Central Bank of Bahrain (CBB) has issued a circular to all retail banks and finance companies to provide the option of postponing loan repayments for an additional period of six months.
The circular is in line with the royal directives by His Majesty King Hamad bin Isa Al Khalifa, to strengthen national efforts to overcome the economic challenges of Covid-19, and in support of the decisions of the Government Executive Committee, chaired by Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister and in accordance with the recommendations of the National Medical Task Force for combating the COVID-19, a Bahrain News Agency report said.
The option to defer loan repayments applies to all individuals and companies until December 31, 2021. It will apply without deferral fees, any increase in the amount of instalments or increase in the interest or profit rate, provided that the interest rates applied by banks are calculated on these loans during the deferral period, the circular said.
CBB Governor Rasheed Al Maraj stated that these arrangements were made in consultation and coordination with the banking and financial sector to support various economic initiatives following the ongoing fallout of the global spread of Covid-19. He noted that the cooperation of the banking and financial sector with individual and corporate clients to postpone loan repayments in the past period has greatly contributed in alleviating the economic impact of the pandemic, in a way that has helped stabilize financial and commercial transactions and various economic activities and maintain their sustainable growth path.