*** Bahrain rejects proposal for loan payment deferral during Ramadan | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Bahrain rejects proposal for loan payment deferral during Ramadan

TDT | Manama   

The Daily Tribune – www.newsofbahrain.com

The Bahraini government has rejected a Parliament-submitted proposal to defer personal and property bank installments and housing loans, excluding interest, for the holy month of Ramadan.

The government consulted with banks and the Bahrain Association of Banks (BAB), but all parties disagreed due to a lack of economic justifications or exceptional circumstances like the COVID-19 pandemic.

The government emphasized that banks are private institutions, with most listed on the stock exchange and some branches of foreign banks. The COVID-19 pandemic was an exceptional situation that required measures to support the economy.

Impact

“They have established budgets for financial results, and therefore, the losses resulting from the deferment of installments would impact investment in this sector,” the government revealed.