THE government should consider allowing pensioners to pay 10 per cent of their net monthly income towards repaying their housing loans – instead of the current 25pc, according to a group of five MPs.
The proposal, spearheaded by Parliament services committee chairman Ahmed Al Ansari, comes as many families are finding it difficult to make payments, with the coronavirus (Covid-19) pandemic compounding the problem.
The lowest pension is BD150 per month and the highest is 80pc of a person’s net income, depending on years of service and deals.
Housing loans are granted for a 30-year period either through direct financing from the Eskan (Housing) Bank, housing units from the Housing Ministry or through indirect financing from local banks.
“When employees retire their wages drop sharply and they cannot afford to continue paying the 25pc which they did when they were working,” said Mr Al Ansari, who is also Al Asala (Salafi) bloc president.
“Many of them can barely meet their living expenses and other commitments; several of them are forced to approach charities to help make up the difference.
“This should not be the case and the government must empathise with the hardship of the families.
“Now, with Covid-19 the situation is backbreaking and expenses have soared beyond what they were around less than two years ago.”
The veteran parliamentarian said the 10pc proposal was an average.
“Deducting 25pc of a housing beneficiary’s salary towards repaying loans is alright under normal circumstances, but not when a person has retired and is living off a pension.
“The 10pc proposal is reasonable and bound to satisfy all parties.”
He pointed out that it was not breadwinner’s fault that housing projects take two decades to be completed.
“This means that a housing beneficiary receives his home towards the end of his service and not when he is still young.”
Waiting
The GDN reported in March this year that a heartfelt plea to clear the mounting backlog of families on social housing waiting lists was made in Parliament.
A total of 57,198 Bahraini families are on the Housing Ministry’s waiting lists.
Housing Minister Bassem Al Hamer said at the time that 50,794 were waiting for homes while 3,647 were seeking apartments and 2,757 housing plots.
A total of 44,960 families were receiving monthly aid, he added.
Every family on the waiting list receives a monthly allowance of BD100.
Mr Al Hamer added that any drop in revenue would mean further setbacks to projects and contribute to adding more names to the waiting lists.
Housing loans were deferred multiple times to offset the financial impact of Covid-19 on families.
According to a Central Bank of Bahrain report in May this year, the total amount of loan instalments deferred by banks and financing institutions reached BD5.1 billion since the spread of the pandemic.
Bahrain’s banks have deferred loan instalments four consecutive times since the spread of the pandemic.
The first deferral, which included all individuals and institutions, was for six months, from March to August last year, without any interest or profit.
The second deferral covered four months, from September to December last year, with interest, followed by a six-month period this year, from January to June and a fourth period from June until year-end.
“Housing loans have to be rescheduled now and assessed when things improve,” said Mr Al Ansari.
“It is wrong to see families suffer especially during this time when they need every fils to survive.”
mohammed@gdn.com.bh
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