Bahrain central bank unveils measures to support economy amid regional tensions
The Central Bank of Bahrain has announced a series of measures aimed at supporting the economy and financial sector as regional conflict weighs on growth and stability.
Retail banks and financing companies will allow customers to defer loan instalments and credit card payments, including both principal and interest, for three months, News.az reports, citing BBC.
The deferral applies to individuals and businesses, while lenders will also be permitted to delay the reclassification of affected loans.
In a move to boost liquidity, the central bank cut reserve requirements to 3.5% from 5% and lowered both the minimum Liquidity Coverage Ratio and Net Stable Funding Ratio to 80% from 100%.
Despite the easing measures, the central bank said the financial sector remains stable, supported by strong capital buffers and adequate liquidity, adding that it stands ready to take further action if necessary.
The steps come as rising tensions in the region weigh on economic prospects. The World Bank has revised down Bahrain’s growth forecast for 2026 to about 1.3%, from more than 3% previously.
News.Az
By Faig Mahmudov
