Proposal to erase entrepreneurs’ old debts from records

TDT | Manama

Email: mail@newsofbahrain.com

Entrepreneurs weighed down by old debts might finally breathe easier under a proposal to allow the removal of fully repaid credit obligations from records — a move aimed at clearing obstacles to starting businesses.

The draft legislation, submitted by MP Mohammed Al Ma’arafi, seeks to amend the Central Bank of Bahrain and Financial Institutions Law.

It would grant individuals the right to request the erasure of credit history entries tied to settled debts, provided they can furnish proof of repayment.

Al Ma’arafi explained that the change is intended to encourage individuals to pursue business ventures without the shadow of past financial records limiting their opportunities.

He noted that the measure could create a more attractive climate for entrepreneurs while strengthening Bahrain’s efforts to protect consumer rights and broaden its economic base.

The MP also stressed that allowing individuals to erase these records could prompt a shift in financial habits, steering people toward a life free from debt.

He pointed out that the proposal could also alleviate the psychological burden of past financial struggles and help rebuild self-assurance, particularly for those who have endured difficult experiences.

If enacted, the proposal has the potential to transform credit reporting in Bahrain, offering a fairer system that balances individual rights with financial transparency