Better loan schemes for pensioners urged

Considering the continually increasing expense of living in the past few years, a Bahraini lawmaker has called for introducing easier banking procedures for pensioners, especially those from the limited income category. MP Mohammed Buhamood said in a statement issued this week that he would submit a proposal to the parliament to allow pensioners to reschedule their loans, allowing them to reduce the monthly instalments they pay to banks.

Commenting on his proposal, Mr Buhamood said: “Many citizens are forced to take loans from banks or pension replacement loans to manage their basic family life, as the loan instalments are distributed over many years without considering the post-retirement period, which witnesses a sharp decline in their monthly incomes.” “The monthly loans deduction from retired citizens who have retired and still have loans is more than 50 per cent of their income and this is contrary to the system of the Central Bank of Bahrain and its mechanisms to lend loans,” he explained.

The lawmaker justified his proposal further stating that it allows granting citizens the opportunity to reschedule personal loans they borrowed from commercial banks after they are retired, and benefit from decreased interest rates. Mr Buhamood added: “This system is in force in a number of our fellow GCC States, which are allowing citizens to reschedule their loans without imposing any additional fees on them, considering their humanitarian conditions and aiming to ease the financial burdens on them, especially that this category has dedicated the best years of their lives to serve the homeland in both the public and private sectors.”

Mr Buhamood’s statement came a week after another MP, Adel Al Asoomi, urged the government of Bahrain to interfere and curb the high interest rates imposed by banks on its clients. Mr Al Asoomi’s demand came after a recent report showed that commercial banks in Bahrain have had an increase in profit by BD241.2 million this year. He blamed the increase in profit to the high interest rates it imposes on its clients, especially traders.