Push for three-month loan payment freeze

TDT | Manama

Email : editor@newsofbahrain.com

An urgent parliamentary proposal calls for personal loan instalments to be put off for three months, with no extra interest, after MPs warned that the economic fallout from the Iranian attacks could hit household budgets.

The proposal asks the relevant bodies to study the move in coordination with the Central Bank of Bahrain, banks and finance firms, with the aim of giving families breathing space while keeping the banking sector stable.

Khalid Buanaq, one of the MPs behind the proposal, said the call came amid regional strain and security unrest that could carry an economic toll for individuals and families.

Households

He said some households might face short-term money strain because of a drop in some business activity or a rise in living costs, making it harder to keep up with monthly dues.

“In such exceptional circumstances, some families may face temporary financial challenges,” he said.

He added that this could affect “their ability to meet their financial obligations, especially personal loan instalments due to banks and financial institutions”.

Dues

The lawmaker said personal loans were among the monthly dues carried by a large share of citizens, and that keeping those payments due during emergency economic conditions could place another weight on some families.

A pause for a set period, he said, would help ease the strain and give people time to reorder their finances.

Buanaq said the delay should come without any added interest or fees so that the move gives real relief rather than leaving people with a bigger bill later.

“It is also important that this postponement be made without charging any additional interest or fees during the postponement period,” he said, “so that the intended purpose of this measure is achieved in genuinely easing the burden on citizens”.