CBB opens liquidity taps, offers loan breathing space
TDT | Manama
Email: mail@newsofbahrain.com
Bahrain has rolled out a sweeping financial relief package, offering up to three months’ deferment on loan and credit card repayments to ease pressure on households and businesses.
In parallel, the Central Bank of Bahrain has unveiled a series of additional measures to inject liquidity and reinforce the banking sector, including unlimited dinar funding for banks, relaxed reserve requirements, and eased liquidity ratios to sustain credit flow across the economy.
Announced by the Central Bank of Bahrain, the move comes in line with directives from His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, aimed at safeguarding financial stability and sustaining economic momentum across the Kingdom.
The repayment pause will apply to both individuals and businesses, giving banks and financial institutions flexibility in delaying the reclassification of affected loans. The Central Bank noted that total domestic lending currently stands at around BHD 11.3 billion. In a further boost to the financial system, the Central Bank will inject unlimited Bahraini dinar liquidity into commercial banks for six months against eligible collateral, estimated at nearly BHD 7 billion.
It will also extend the maturity of repurchase (repo) operations to three months, providing banks with greater funding stability. Additional measures have been introduced to enhance liquidity, including a reduction in the reserve requirement ratio from 5% to 3.5%, alongside easing the Liquidity Coverage Ratio and Net Stable Funding Ratio from 100% to 80%.
The Central Bank reaffirmed that Bahrain’s banking sector remains resilient, backed by strong capital adequacy and liquidity levels. It added that it will continue to closely monitor developments and stands ready to take further action to ensure financial stability and the uninterrupted flow of credit in the Kingdom.
Shura Council backs bold economic support drive
TDT | Manama
Email: mail@newsofbahrain.com
Bahrain’s financial relief measures have drawn strong backing from the Shura Council, with its Speaker hailing the package as a timely step to reinforce economic stability and national unity.
H.E. Ali bin Saleh Al-Saleh praised the announcement of the major financial support package issued under the directives of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister.
Al-Saleh said the measures reflect a spirit of national solidarity and play a key role in strengthening the Kingdom’s economic resilience.
“These proactive steps align with His Majesty King Hamad bin Isa Al Khalifa’s vision to support citizens and safeguard their livelihoods. They help reduce the impact of recent economic challenges and reflect strong national unity,” he said.
He reaffirmed the Shura Council’s support for government efforts to assist the private sector and protect jobs, adding that a proposed draft law linked to the measures will be prioritised once submitted for review.
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