Loan payment deference to help citizens for another 6 months!

The Central Bank of Bahrain (CBB) has directed banks and financing companies to offer Bahrainis and local companies the option to defer their loan instalment-payments for another six months from January 1, 2021, with interest and without calculation of deferral fees.

CBB’s circular, with reference to what was discussed with the Bahraini Banks Association on new coronavirus updates, is aimed at taking proactive action to support the national economy.

It also provides the option of keeping the premium amount unchanged, and not increasing profit and interest rates.

The Central Bank indicated that the option to postpone instalments must be offered to customers residing in the Kingdom from individuals and companies in stages 1 and 2, excluding amounts due on credit cards, and loans transferred to court unless there is coordination with the court on it.

It also indicated the credit facilities given to resident companies that include non-resident participant lenders, pre-export financing under letters-of-credit to the resident company exporter.

The Central Bank emphasised the necessity of securing discounted check facilities from the option postponement subject to replacing it with new checks.

It stressed that customers are not charged to provide deferral option, and that all terms and conditions must continue in accordance with the original agreement with customers.

The Central Bank requested all banks and their licensed personnel to inform their customers of changes in the period and total amount due, and the additional profit or interest to be collected from them.