New Proposal Could Erase Bad Credit History for Bahrain’s Citizens and Residents

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Email: mail@newsobahrain.com

Bahrain’s entrepreneurs and business owners, who have struggled with the weight of adverse credit histories, may soon find relief thanks to a new parliamentary proposal.

In a move designed to boost financial freedom and fuel Bahrain’s business environment, MP Mohammed Al Ma’arifi, backed by several other parliamentarians, has put forward a law that could change the way credit reports are managed in the Kingdom.

The proposal seeks to add a new clause to Article 68 (bis 3) of Law No. 64 of 2006, known as the Central Bank of Bahrain and Financial Institutions Law.

If passed, the law would allow individuals to remove information from their credit reports once they’ve settled their financial obligations.

The proposed new clause reads, “A customer may request the removal of any information from their credit report relating to credit obligations, provided they submit proof of fulfilment.” This legislative change is more than just a technical update, it could be a game changer for Bahrain’s economy.

National income

The explanatory memorandum accompanying the proposal highlights that this amendment would pave the way for a more attractive business environment and aid in the diversification of national income.

Many individuals, who have shied away from launching new ventures due to the lingering shadow of past financial troubles, would now be able to move forward without fear that their history will block future opportunities.

MP Al Ma’arifi and his fellow proponents argue that this initiative could spark a significant shift in financial behaviour.

By enabling people to erase past financial mistakes from their records, the proposal encourages a debt-free lifestyle and fosters a healthier approach to managing credit.

Beyond the practical benefits, the proposal also promises a psychological boost. For those who have experienced financial hardship, the ability to clean their credit slate could restore confidence and provide the emotional relief needed to rebuild their lives and businesses.

In a broader sense, the memorandum emphasizes the legislative body’s duty to ensure that laws keep pace with societal changes.

Livelihoods

Bahrain’s economic landscape has evolved, and so too must the laws that impact the livelihoods of its citizens and residents.

This proposal, if adopted, could represent a powerful step towards helping Bahrain’s entrepreneurial spirit thrive once more, unburdened by the mistakes of the past.

A s the proposal move s through the parliamentary process, there is hope that soon, bad credit histories could become a thing of the past, opening doors for a new era of financial freedom and opportunity in the Kingdom of Bahrain.