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Gulf country extends repayment of all loans

A gulf country has decided to extend the repayment of all loans. The Central Bank in Bahrain has announced this. The apex bank in the country has ordered all banks and financing companies to extend repayment of loan installments for six more months, starting January 2021. The decision was taken as part of the Bahrain government’s measures to ease pressure amid the coronavirus pandemic.

“Licensees must offer their customers six-month installments deferment options, starting from January 1, 2021. The said option must entail extending the tenor to take into account the additional profit/interest, while keeping the installment amount unchanged,” the Central Bank of Bahrain said its circular to banks.

The option to postpone installments must be offered to all customers residing in the country, whether individuals or companies, with the exception of amounts owed on credit cards and loans transferred to the court, unless there is coordination with the court.

Earlier in March Bahraini nationals were given the option of delaying payment of bank loans by six months.

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