MP proposes 2.5% minimum credit card payment from 5%

A proposal to cut the minimum monthly repayment on credit-card bills to 2.5 per cent, from 5 per cent, has been filed in Parliament by MP Mohammed Al Ma’refi, along with a plan to fix one statement date for all banks and licensed card issuers. Al Ma’refi’s proposal asks the government to direct the Central Bank of Bahrain to change the minimum payment for Visa and Mastercard statements so it matches the 2.5 per cent rate applied to retirees. He said the change is aimed at easing monthly pressure on citizens and residents with financial obligations.

Statements

He also wants all credit-card statements issued on the 20th of each Gregorian month, replacing the mix of dates used by different banks and firms. Under his plan, the grace period would run from the 20th until the next month’s statement is issued. In the explanatory memorandum, Al Ma’refi said credit cards are among the most used banking tools in the local market and that some rules linked to them should be reviewed.

Repayment

He said lowering the minimum repayment would give cardholders more room to manage monthly spending, especially low-income earners and households with fixed costs, as cards are being used more to cover basic needs. He said applying the 2.5 per cent rate to all customers would extend a rate already used for retirees. He also said a single statement date would reduce confusion linked to different issue and payment dates between banks, help monthly budgeting, and cut late payment and unintended default.