MANAMA: Rasheed Al Maraj, Governor Central Bank of Bahrain, (CBB) said that GCC $10billion fiscal balance programme has had tremendous impact on the economic strength of the Kingdom of Bahrain.
He was speaking to the reporters on the sidelines of the opening of the 3rd Middle East and Africa Fintech Forum 2019 which is being held at the Ritz Carlton Hotel, the Governor said that all indicators within the financial sector have been encouraging showing the strength of the national economy.
The Kingdom of Bahrain’s banking system has recorded profitability and growth in 2018 and overall the year was good and we hope that this trend is likely to be sustained in 2019, says Rasheed Al Maraj, Governor Central Bank of Bahrain, (CBB).
Responding to a question about the outlook of the national economy in the wake of stronger dollar and rising interest rates, the Governor said that better interest rates help the banks and impact positively on the economy as well. “Strong dollar also impact positively on the competitive imports since Bahrain is a dollar pegged economy,” he added.
Talking about the consolidation, mergers and acquisitions within the banking system of Bahrain he said the CBB has been keen on the consolidation and as a policy the Central bank would likely to see financially sound institutions.
Al Maraj said that initially the CBB has given a nod on the KFH and AUB merger, subject to the due diligence and completion of the due process in accordance with the rules and regulations.
The CBB Governor, while highlighting the salient features of $10 billion package received by Bahrain, said the fiscal balance programme has a tremendous impact on the level of confidence and the bond prices have triggered 50% to 60%.
“The $10billion fiscal balance programme is interest free and is a long-term loan means not going to be a burden on the national economy,” he said, adding that there were no plans yet for launching a bond as it depends upon the budget of 2019-20 following the approval by the parliament.
“The Fintech Forum has witnessed great strides in the past three years and this year it has attracted a record number of Governors of the Central Banks from across the Arab region. We are pleased to work with the Bank ABC as partner in putting together such an impressive gathering.”
