Manama: The Central Bank of Bahrain (CBB) on Tuesday in a statement said there should be no administrative fees for loan installment postponement for three months till the year end.
This came in line with the Cabinet decision to defer the loan installments for the locals as part of providing a relief due to the COVID-19 pandemic which has hit the businesses hard.
The CBB has directed the banks to apply the previous six months loans deferment terms and conditions till the year end.
The CBB referring to the circular directed to all banks, finance companies and microfinance institutions, explaining that they will not impose administrative fees on the request to postpone the loan installment until the year end.
The CBB directed all banks to apply the same terms and conditions based on loans in terms of interest rate or profits and the cost of extending the insurance policy when loan installments are postponed until the end of this year.
“The circular was issued within the framework of Cabinet session and directing the CBB to postpone loan payments until the end of this year to relieve citizens in these exceptional circumstances in a way that helps in providing liquidity to enhance support for various economic sectors,” the statement added.
