Hamad bin Isa bin Salman Al Khalifa orders the Central Bank of Bahrain to package new measures to support the economy
Hamad bin Isa bin Salman Al Khalifa orders the Central Bank of Bahrain to package new measures to support the economy

According to the instructions of Hamad bin Isa, the Bahraini Central Bank just took new executive steps and measures to revive the Bahraini economy for fear of collapse, after the current crisis caused by the Corona virus and its impact on the economy in the State of Bahrain.

On the sidelines of that urgent meeting, the Bahraini Central Bank took these villages to support the economy of the State of Bahrain, with the aim of helping banks, finance and financial leasing companies to overcome the repercussions of the crisis on the national economy.

And according to what was monitored by “Al-Nasr newspaper” from a publication issued by the Central Bank of Bahrain that was circulated on social media, the Bahraini Central Bank decided to take a package of incentive measures as follows:

1- First, reduce the base rate on one-week deposits from 2.25% to 1.75%.

2- Covering the issue No. 1784 of the monthly government treasury bills, which is 35 million dinars, at 329 percent.

3- The issue maturity for the issue extends to 182 days, as it has already started from December 1 of the current year 2020, until May 31 of the following year.

5- The average interest rate on this issue reached 2.57 percent, compared to 2.63 percent on the previous version.

6- Responding in the current period to all requests to postpone the payment of installments and interest / profits of loans affected by the repercussions of the current situation in the country of others, especially for small and medium enterprises, and that period is six months with immediate effect and not affecting this credit rating.

7- Reducing overnight deposits from 2.00% to 1.50%, and the interest rate for one month deposits from 2.45% to 2.20%.

8- Lending facilities at 4.00%.

9- Exempting all loans related to financing government projects in Bahrain for the year 2020AD from the credit rating, for a period of up to six months, in accordance with the instructions received by the Central Bank of Bahrain in the circulars previously issued in that regard.

10- Generally consider reducing the fees imposed at the present time on all banking services and not adding any new fees during the current year 2020 AD until further notice.

11- Given the current conditions that the country is going through, reduce the interest rate on repurchases by seventy-five basis points to 0.50% and raise the maximum period of repurchases to three months.

12- Reducing the interest rate on government treasury bill deductions by 100 basis points to one percent.

8- Reducing the interest rate on foreign exchange swaps by 50 basis points, and raising the maximum period for currency swap operations to six months.