Bahrain MPs back proposal to defer loan instalments

An urgent proposal to defer until the end of the year all bank loan instalments owed by Bahrainis has been backed by all the MPs.

They now want the motion to get the green light from the Cabinet days before the original reprieve period ends next week.

The proposal is spearheaded by Ibrahim Al Nefaei and aims to allow people, businesses and the economy to recover properly from the effects of Covid-19.

Loan instalments were deferred since March under the BD4.3 billion stimulus package.

“There is no flow of tourism or people using the King Fahad Causeway and it means that the only source of business is local spending,” said Mr Al Nefaei.

“If there is no extension of the reprieve, people will refrain from spending, thus stalling any recovery.

“A four-month extension to the deferral will enable the economy to rebuild and get things going in a positive direction.”

The GDN reported yesterday that Bahrain’s economy is showing signs of recovery.

A memo submitted by the Finance and National Economy Ministry reported a tangible improvement in performance of a number of non-oil sectors.

The current economic outlook topped the weekly Cabinet session on Monday.

Consumer activity is on the rise with sales of non-essential goods growing by 12 per cent in June and 28pc in July, while sales at food outlets rose by 9pc and 15pc, respectively.

Total exports increased by 2pc and 12pc in June and July.

Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa also said visitors to shopping malls jumped by 20pc and 30pc in June and July, while an increase in movement across the kingdom was also reflected in an increase in petrol sales by 15pc in June and 13pc in July.

New individual commercial registrations soared by 109pc in June and 4pc in July while corporate CRs grew by 59pc and 7pc.

Real estate transactions jumped by 55pc and 19pc, while building permits more than doubled, increasing by 124pc in June, compared with the same period last year.

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