CBB announces six-month waiver on loan instalments for Bahrain nationals

TDT | Manama

Bahraini nationals are granted a six-month delay on their loan instalments, said CBB Governor, in light of COVID-19 outbreak.

The loan waiver will be provided “without fees, interest-on-interest (compound interest) or increase in the profit or interest rate,” said Rasheed Mohammed Al-Maraj, the Central Bank of Bahrain (CBB) Governor. All retail banks, finance and micro-finance firms in the Kingdom are part of the deal. The directive applies to credit due on credit cards as well as amount already deducted from the credit card limit as of 19 March 2020. It does not include inter-bank deposits or borrowings.

“Any customer, as defined above, who wishes to benefit from a delay period shorter than 6 months or who does not wish to benefit from the deferral service, must inform the lending institution he deals with accordingly,” Al Maraj said. This directive is effective 19 March 2020, as the due portion should not be deducted from clients’ accounts in March. The waiver falls in line with the Royal Directives of His Majesty King Hamad bin Isa Al-Khalifa to unify all national efforts to avert the spread of the global outbreak of the novel coronavirus (COVID-19).

According to the royal directives, a BD4.3 billion stimulus package was launched to ensure continuity of state projects to achieve sustainable development whose windfall benefits citizens.