Bahrain Development Bank extends 153 financing facilities to SMEs

Impact of pandemic has been severe for SMEs

  
General view of Bahrain World Trade Centre in Manama, Bahrain, June 20, 2019. Image used for illustrative purpose

General view of Bahrain World Trade Centre in Manama, Bahrain, June 20, 2019. Image used for illustrative purpose

REUTERS/ Hamad I Mohammed

MANAMA: Bahrain Development Bank (BDB), the kingdom’s specialist bank for small and medium enterprises (SMEs), has extended 153 financing facilities to new and existing SMEs during the first quarter of 2021.

These facilities totalling BD6.09 million are expected to facilitate the creation of 100 new jobs.

Included in this are facilities totalling BD371,000 under the BDB-Riyadat Scheme to support women-owned enterprises.

Additionally, facilities totalling BD157,000 were provided under the Fisheries and Agriculture Scheme.

In line with Central Bank of Bahrain (CBB) directives, the bank also deferred payment of instalments falling due from January 1, 2021 to June 30, 2021 for all eligible applicants.

The bank reported a net profit for Q1 2021 of BD301,000 and continues to maintain healthy capital adequacy ratio (CAR) of 62.45pc.

BDB also maintains a prudent level of credit impairment coverage to ensure sustainability over the long term.

Commenting on the performance, Sanjeev Paul, chief executive of BDB Group, said: “The pandemic has had a significant negative impact on all businesses. The impact has been especially severe for SMEs which tend to be the most vulnerable. With the support of its various stakeholders, BDB continues to strive to support Bahrain’s SMEs and entrepreneurs to weather this difficult environment.

“The group was quick to respond to changing market and customer needs and is fast tracking its digital transformation strategy, which is expected to be completed during 2021.”

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