Bahrain's senior legislators are set to meet government officials this week to negotiate additional financial support for the sectors most affected by the Covid-19 pandemic.
The financial and economic affairs committees from both Parliament and Shura Council will meet the Finance and National Economy Ministry on Wednesday to draw up the list of the affected sectors.
It comes after Parliament’s financial and economic affairs committee met yesterday to determine a mechanism for the support which includes three categories: Not affected, partially or medium affected, and most affected.
Committee chairman Ahmed Al Salloom told the GDN that the new mechanism will be presented during Wednesday’s negotiations with the government.
The GDN reported on Thursday that a special financial support package for the five sectors most affected by the pandemic will be drawn up by the end of the month.
The government has already identified the hospitality sector (including hotels and entertainment facilities), tourism sector (including travels agencies and religious pilgrimage operators), food and beverage sector (including restaurants, cafes and sheesha shops), sports and fitness sector (including gyms and fitness centres) and cinemas as the most affected.
The government has already dispensed support from its BD4.3 billion financial stimulus package to offset the impacts of the outbreak.
“It is clear that a package is on the way for the next period, but how it would be drawn up is something we need to figure out between us, the Shura Council and the government,” said Mr Al Salloom, who is also Bahrain Chamber of Commerce and Industry board member.
“First, we need to know how much is left from the BD4.3bn package, what are the available funds and what are the projections in order for the new package to serve longevity and achieve its intended purpose.
“We are proposing three categories for the most affected, medium and partial affected, and not affected.
Formula
“The formula has to be to maintain a strong economy, have strong businesses and labour market, while people’s standards of living should not be affected.”
MP Ahmed Al Amer, who is a member of the committee, predicted that any new financial support package would be at least BD1 billion.
“Companies are not profiting and the government aid, despite helping them stay alive, is like life-support and now there has to be long-term support that balances their spending,” he said.
“The Unemployment Fund has BD500m surplus, but what would it fund? Paying wages or other support.
“The government doesn’t want to open the Future Generations Fund and we don’t want it to borrow any further as we seek to ensure the fiscal balancing programme by the end of 2022.”
The government has paid wages for Bahrainis in the private sector along with bus and taxi drivers and kindergarten teachers for April, May and June.
It has also exempted everyone from paying electricity and water bills, and waived municipal, tourism and labour fees for the same period.
Dropped
All rents of government property for the three months have also been dropped.
Grants worth between BD1,050 and BD12,000 for affected businesses have also been distributed through Tamkeen, while others were given low interest loans under the Liquidity Fund, which has been doubled from BD100 million to BD200m.
Bank loan instalments for Bahrainis have also been deferred for six months.
Thirty-six MPs have also submitted a proposal to renew the original package for three more months.
mohammed@gdn.com.bh
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