To receive bids starting Wednesday
The newly-established BD 100 million Liquidity Support Fund will begin receiving bids from 18 December 2019, it was announced yesterday. Credit facilities will be offered at an interest rate of 2.5 per cent to pay short term obligations, particularly related to paying suppliers and wages.
Applications for large companies with an annual income above BD 3 million will be received at the National Bank of Bahrain’s main branch, Seef Mall branch, Atrium Complex branch and the Istiqlal Highway branch. Applications for SMEs with an annual income below BD 3 million will be received at Bahrain Development Bank’s Sitra branch, Riyadat branch, Diplomatic Area branch, and the Hidd Industrial branch.
All applications will be reviewed against specified eligibility and credit evaluation of the company. Credit application requests for large companies are capped at BD 1 million and BD 250,000 for SMEs, with a loan period of up to three years.
The application criteria to be met by large companies includes: holding an active commercial registration; carrying out commercial activities in Bahrain for five consecutive years; a minimum of 51pc Bahraini ownership; financial statements for the last four financial years, including for the fiscal year 2018, in addition to positive financial solvency; and a positive gross profit margin for three of the past five years.
SMEs includes: holding an active commercial registration; a minimum of 51pc Bahraini ownership; commercial activities operated in Bahrain; no requests for reorganisation or liquidation according to the Kingdom’s bankruptcy law; financial statements for the fiscal year 2018; and a positive gross profit margin for one of the past three years.