Banks operating in Bahrain have affirmed their willingness to extend their support to customers and welcome their requests to defer loan installments until the end of the current year, to mitigate the effects of the Covid-19 pandemic, a Bahrain Association of Banks (BAB) statement said.
BAB said the move is in response to the Royal directives, the Cabinet of Bahrain and the Central Bank of Bahrain guidelines, and an appreciation of the exceptional efforts made by the government in providing support to the national economy.
The retail banks and financing companies operating in Bahrain will provide their individual and corporate customers with the option to defer loan installments from September until the end of the current year 2020, provided that the interest on the amount and administrative fees will have to be paid and calculated during the deferred period with the same terms and conditions currently applied, BAB said.
It should be noted that the period of repayment of the loan or financing would increase relatively to maintain the amount of the installment unchanged, as the banks will inform their customers.
The association called on individuals wishing to benefit from the installment postponement, with the same conditions included in the existing contracts and agreements, to submit their requests through the link sent by banks to their mobile number to complete the necessary procedures or through any other means of communication within a maximum deadline of seven days from the date of contacting them.
Regarding the companies wishing to defer their installments, they can communicate directly with their account manager in the concerned bank. If the request to postpone the installments is not submitted, the installments will continue as usual without any change.
Adnan Ahmed Yousif, Chairman of the Board of Directors of Bahrain Association of Banks (BAB), stated: "We are delighted to announce today, with the continuous and substantial support provided by our wise leadership, the esteemed government and the Central Bank of Bahrain to the banks operating in Bahrain, that all the banks will fully cooperate with the admirable national efforts executed to allow our economy to overcome the repercussions of Corona pandemic with the least possible damages. Banks are fully prepared to support these efforts through their response to defer the installments owed by their individual and corporate clients until the end of the current year, provided that the interest rates and fees prescribed by banks on these loans are calculated during the postponement period."
"We invite all clients who wish to postpone their installments to communicate directly with their banks through the special links that will be provided for this purpose shortly," Adnan added.
Dr Waheed Al Qassim, CEO of the Bahrain Association of Banks, praised the substantial national efforts performed by the government to provide all support and protection for the national economy and Bahraini society, as well as the cooperation and support of the legislative authority for these efforts, and the sound directives of the Central Bank of Bahrain and its continuous support for banks to play their role effectively, in a way that does not affect banks' liquidity and financial solvency.-TradeArabia News Service