Bahrain Middle East Bank (BMB) has announced the full repayment of a $17.4 million legacy debt obligation - together with interest - as inherited by the present management who took charge of the institution's affairs in early 2009.

"The bank's journey of restructuring has been painstaking and one carried out amidst the most challenging environment and one that has witnessed a global financial meltdown, and European debt crises and other challenges," said chief executive Akbar Habib.

"Notwithstanding, efforts and endeavours necessary to safeguard and preserve the interest of our valued stakeholders have all been successfully undertaken, including those that were viewed as completely irrecoverable," he noted.

"Repayments have been undertaken entirely by way of internally generated funds without resorting to any external funding channels."

"During the phase of restructuring, the bank has also simultaneously built a new foundation and operating platform that encompasses multiple business lines capable of delivering and producing diversified and sustainable sources of income and one that is relatively resilient to financial market volatility," said Habib.

"This new business model has received recent recognition from Fitch with the institution's outlook being notched up from stable to positive," he stated.

"The bank's current rating is its highest, in its entire history. With these positive developments, we look to the future with an increasing level of confidence and optimism," he added.-Reuters