Liquidity Support Fund: Application deadline ends for larger enterprises

The Liquidity Support Fund has closed applications for larger enterprises with an annual income above BD three million, with the application window for Small and Medium Enterprises (SMEs) remaining open until 19 March 2020. The BD 100 million Liquidity Support Fund, launched following the instructions of His Royal Highness the Crown Prince during the 2019 Government Forum, supports private sector companies by offering credit facilities at a 2.5 per cent interest rate.

The fund will review all applicants against specified eligibility. Credit application requests for large companies are capped at BD one million, and BD 250,000 for SMEs, with a loan period of up to three years. All SMEs with an annual income below BD three million may continue to apply at the Bahrain Development Bank’s Sitra, Riyadat, Diplomatic Area, and the Hidd Industrial branches. Applicants do not need to have an account with the bank in order to qualify.

In order to qualify, SME’s must meet certain application criteria, including: holding an active commercial registration; maintaining a minimum of 51 per cent Bahraini ownership; commercial activities operating in Bahrain; no requests for reorganisation or liquidation according to the Kingdom’s bankruptcy law; financial statements available for the fiscal year 2018; and a positive gross profit margin for one of the past three years.

Minister of Finance and National Economy Shaikh Salman bin Khalifa Al Khalifa recently met with the representatives of the relevant authorities concerned with the Liquidity Fund. The fund aims to restructure private sector companies’ financial obligations within the Kingdom.

The meeting was attended by the Chairman of the Labour Fund (Tamkeen), Shaikh Mohammed bin Essa Al Khalifa; the Chairman of the National Bank of Bahrain (NBB), Farouk Al Moayyed; the Chairman of BBK, Murad Ali Murad; the Chairman of Bahrain Islamic Bank, Dr Esam Abdulla Fakhro; the CEO of Bahrain Development Bank, Sanjeev Paul; and a number of government officials.

During the meeting, the Minister of Finance and National Economy followed up on the latest developments regarding the mechanisms and organisational procedures of the fund. The meeting further provided an opportunity to review the timeframe to establish the fund and recommendations put forth to benefit and support private sector companies across various economic sectors, in line with the Kingdom’s economic development goals.