Several MPs have submitted a legislative proposal that would prevent the public debt from exceeding, at any time, 60 per cent of the gross domestic product (GDP).In case the outstanding balance of the public debt exceeds, at any time, 40pc of the GDP at current prices for the past, if relevant data is available, the government shall make the necessary arrangements to prevent that balance from reaching 60pc.

Under the proposed law submitted by MPs Ahmed Qarata, Mohammed Al Maarafi, Abdulhakim Al Shino, Jamil Mulla Hassan and Zainab Abdulamir, a register shall be established at the Central Bank of Bahrain under the name “Government Bonds Register” to record all data related to these bonds, such as the name of the owner of the first government bond and any change concerning the ownership mortgage or seizure of the bond, with the exception of treasury bills and bearer bonds.

The bill also stipulated that a public loan agreement shall be concluded only to finance the budget deficit or priority projects included in the general budget plan, or to provide the financing included in the general budget law or in any other law that is necessary to deal with disasters and emergencies, or to restructure internal and external indebtedness, support balance of payments or finance any other projects, for justified reasons approved by the Cabinet.

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