The Family Bank announces the postponement of interest-free loans for citizens for 6 months

26-03-2020

His Excellency the Minister of Labour and Social Development, Chairman of the Board of Directors of the Family Bank, Mr Jameel bin Mohammed Ali Humaidan, announced that, as part of the Family Bank’s package of initiatives to address the repercussions of the current situation affecting various sectors, it has been decided to postpone loan repayments for citizens of the Kingdom of Bahrain for a period of six months, including all productive families affiliated with the Ministry of Labour and Social Development and individuals who have benefited from Family Bank loans and facilities. This is in line with the royal directives and in implementation of the Central Bank’s circular in this regard. Humaidan affirmed that the Family Bank’s executive management has begun implementing this decision, taking into account the Central Bank’s immediate decisions to halt all instalment or due claims for various types of loans for individuals and families with limited and low incomes, as well as small and medium enterprises, due for the next six months, while cancelling any interest, dividends, and any other fees. As for the remaining customers who do not wish to defer their due instalments, they are currently being contacted to obtain their written instructions to that effect. For his part, Family Bank CEO Dr Khalid Abdullah Ateeq affirmed that this decision is part of the measures taken by the Kingdom of Bahrain to support Bahraini citizens in overcoming the repercussions of the current circumstances facing the country and the world due to the impact of the Coronavirus (COVID‑19). In this context, Family Bank has suspended all reminders to customers regarding instalment payments, and has also suspended the bank’s collection teams from claiming any outstanding loan amounts from customers. Family Microfinance House is considered the first bank specialising in microfinance, with its banking operations based on the provisions of Islamic Sharia. It represents a model for the social economy through partnerships between the public and private sectors, as well as a model for social projects that work to improve and raise citizens’ income levels by providing financial and non-financial services in a manner consistent with the provisions of Islamic Sharia. More than 6,000 Bahraini families and small businesses have benefited from the bank’s services since its opening. More than 13 million Bahraini dinars were also disbursed in small loans, contributing to the growth process in the Kingdom of Bahrain.