Bahrain - MPs yesterday called for an urgent loan freeze for businesses financially hit as a result of the ongoing aerial attacks on the country.

Parliament unanimously approved an urgent proposal calling on the government to direct the Central Bank of Bahrain (CBB) to postpone bank loan repayments for business owners and companies directly or indirectly affected by the hostile Iranian action.

The proposal submitted by five MPs, led by Strategic Thinking Bloc spokesman Khalid Bu Onk, has now been referred to the Cabinet with urgency for review.

The proposal requests the government to instruct the CBB to issue exceptional guidance to commercial banks allowing a temporary deferral of loan instalments and credit facility payments.

Speaking on behalf of the five MPs, Parliament’s financial and economic affairs committee chairman and bloc president Ahmed Al Salloom said the measure was necessary to prevent further economic strain.

“Many businesses are experiencing partial or complete closures during what is traditionally one of the strongest sales periods of the year,” he told MPs. “Continuing monthly loan obligations at the same pace under these exceptional circumstances could compound their losses.”He stressed that the aim was to provide a temporary grace period to help businesses reorganise, restore operations and stabilise cash flow without accumulating further losses.

“This is about giving them breathing space – not about undermining banking stability,” he added. “The deferral can be regulated under clear controls set by the CBB.”

According to the explanatory memorandum attached to the proposal, some shops and companies have suffered direct damage, while others have been indirectly affected by supply chain disruptions, reduced commercial activity and weakened demand.

MP Mohammed Al Maarifi warned that failing to intervene could trigger wider consequences.“If we do not act, debt accumulation could expose businesses to serious financial risks,” he said. “That could mean suspended projects and lost job opportunities – and that would inevitably affect the wider economy.”

MP Hassan Ibrahim described the proposal as a necessary protective measure for small and medium-sized enterprises (SMEs).

“SMEs form the backbone of our economy,” he said. “Granting a temporary deferral period alongside other measures within a package helps preserve the stability of the labour market and shields families from unnecessary hardship.”Services committee vice-chairman MP Abdulwahid Qarata backed the proposal and called for what he termed a broader financial rescue plan to ensure economic continuity.“This step reflects flexibility in responding to exceptional events without compromising the integrity of our banking sector,” he said.

“We must act decisively to protect commercial activity and overall financial stability.”The memorandum emphasises that the proposed deferral would be time-limited and subject to regulatory controls, ensuring that banking sector stability remains intact while offering targeted relief to those genuinely affected.

MPs said the move would reinforce national solidarity and demonstrate that Bahrain stands by its entrepreneurs and workforce during extraordinary circumstances.With unanimous backing in Parliament, the proposal now awaits Cabinet consideration, as legislators press for swift implementation to cushion businesses from further financial strain and to safeguard economic momentum.

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