Business leaders and the Cabinet have united in praising a sweeping economic relief package announced by the Central Bank of Bahrain (CBB), describing it as a vital move to protect the private sector and national employment.
The Cabinet, in its latest session, commended the CBB’s comprehensive support programme, which includes loan deferrals and a BD7 billion liquidity injection.
Ministers noted that these measures serve as a ‘vital pillar’ in bolstering the kingdom’s fiscal position and protecting the interests of the community.
Bahrain Chamber (BCCI) chairman Nabeel Kanoo hailed the government’s ‘progressive’ approach to shielding the private sector from regional challenges.
He specifically highlighted the directive from His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, to cover the April salaries of Bahrainis in the private sector through the Unemployment Insurance Fund. Mr Kanoo described this as a crucial step to stabilise the labour market and protect citizens’ gains.
“These decisions reflect a clear leadership vision that prioritises economic stability,” Mr Kanoo said. He added that the combination of loan pauses and liquidity support would specifically assist Small and Medium Enterprises (SMEs) in meeting their operational obligations and maintaining business continuity.
The measures have also been welcomed by the kingdom’s food and logistics sectors. Bahrain Chamber’s Food Committee chairman Khalid Al Amin characterised the relief package as a ‘practical translation’ of HRH the Crown Prince and Prime Minister’s vision for efficient economic management.
Mr Al Amin noted that the CBB’s response directly addresses requests made by the Chamber to ease pressure on traders, such as rising global shipping costs and insurance premiums.
“By improving cash flow and financing flexibility, these measures will bolster the resilience of the food sector, ensure the smooth flow of essential commodities, and reinforce the kingdom’s strategic stock levels,” Mr Al Amin explained.
Meanwhile, the CBB has moved to reassure investors that Bahrain’s financial sector remains ‘strong and stable’, underpinned by high capital and liquidity levels.
“The CBB will continue to monitor developments closely and stands ready to take further measures as needed to safeguard monetary and financial stability,” the central bank confirmed in a statement.
The relief measures are expected to provide immediate financial breathing room for both households and businesses, ensuring that essential financial services remain uninterrupted and sustainable for the long term.
avinash@gdnmedia.bh
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