*** ----> Bahraini banks sustain their national role in facing COVID-19 | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Bahraini banks sustain their national role in facing COVID-19

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

People and institutions adversely affected by the COVID-19 pandemic in the Kingdom are getting a total of two-year deferment on their loans, with its total value also reaching BD 5.1 billion, said the Bahrain Association of Banks.

The moratorium, thus offered, Dr Waheed Al Qassem, CEO of BAB, said, contributed to helping Bahraini families overcome financial challenges resulting from the pandemic, citing a report by Derasat Centre.

Derasat report also confirms that many Bahraini families would have to adopt other solutions to reduce expenses and deplete savings, with a small percentage also defaulting without the moratorium. “All Bahraini banks continue to play their role in supporting national efforts to confront the COVID-19 pandemic,” BAB said, adding that the current moratorium is for the fourth time in a row.

The initial moratorium on loan payments for individual and institutions were from March to September 2020.

The deal allowed lenders a six-month temporary payment halt on their principal and interest. From September to December 2020, CBB again postponed instalments payments for four months but continued to levy interests.

The moratorium, the third time, happened from January to June 2021. As per the latest CBB circular, banks are offering deferments for a fourth time - from June until the end of this year. Dr Al Qassem affirmed that the banks operating in Bahrain are at the forefront of institutions supporting the national efforts to combat the pandemic with an effective response to the royal directives, the cabinet, and CBB.

“Besides, since the start of the pandemic, Bahraini banks have been the largest contributor to the Feena Khair campaign to mitigate the spread of the virus.” Banks had provided a total of more than 10 million dinars to the campaign, Dr Al Qassem said. Bahraini banks, he said, are also continuing to fund individuals, institutions, maintaining employees, developed digital channels and implemented preventive measures decisively to overcome the pandemic.