Proposal to wipe out outstanding personal loans presented

Five MPs have presented an urgent proposal today to wipe out all outstanding personal loans taken out by Bahrainis.

The move, which is spearheaded by MP Mohammed Buhamood, aims to help ‘refresh the market’ and increase spending power crippled by the Covid-19 crisis.

It has been referred by Parliament Speaker Fouzia Zainal to the financial and economic affairs committee for review before presentation next month when sessions resume.

Mr Buhamood told the GDN the loans were around BD2bn - up from BD1.6bn in January.

The proposal comes two days after banks agreed to defer loan instalments until the end of the year, while calculating interest and administrative charges.

Bank instalments had been deferred for six months free of cost between March and August.

Source: http://www.gdnonline.com/Details/872708/Proposal-to-wipe-out-outstanding-personal-loans-presented