The Central Bank of Bahrain (CBB) gave instructions on Thursday to postpone all loan installments for individuals and companies until December 2021.
It issued a circular to all retail banks and finance companies to provide the option to defer loan repayments for an additional period of six months
It will apply without deferral fees or any increase in the amount of installments or in the interest or profit rate, provided that the interest rates applied by banks are calculated on these loans during the deferral period.
The decision comes in line with the royal directives by King Hamad bin Isa Al Khalifa to support national efforts and help the economy cope with the impact of restrictions imposed to contain the coronavirus.
It also comes in support of the decisions taken by 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 Taskforce for Combatting the COVID-19.
Governor of the CBB Rasheed al-Maraj said these arrangements were made in consultation and coordination with the banking and financial sector to contribute to various economic initiatives in light of the pandemic.
Cooperation between the banking and financial sectors with individual and corporate clients to postpone loan repayments in the past period has greatly contributed to alleviating the economic impacts of the pandemic, he explained.
“It helped stabilize financial and commercial transactions and various economic activities and maintain their sustainable growth path,” Maraj added.
