MANAMA: Mahmood Rafique, Editor: Businesses have applauded Bahrain’s BD4.3billion economic stimulus announced by His Majesty King Hamad bin Isa Al Khalifa to keep the wheel of business moving in the wake of global economic upheaval caused by Coronavirus COVID-19 in the world.
“The economic stimulus announced by the Government was much higher than our expectations and this step would mitigate the impact of the COVID-19 on the economy,” Khalid Najibi, the Board Member and the Vice Chairman and the Bahrain Chamber of Commerce and Industry’s (BCCI) told The24X7NewsBahrain (www.twentyfoursevennews.com).
Khalid Najibi, who is also Chamber’s Spokesperson, said that the announcement by the government of economic stimulus package to support the country’s citizens and private sector and minimizing the effects of the coronavirus (COVID-19) would help in sustaining the business sector of the Kingdom of Bahrain.
“The step was absolutely necessary and the leadership had announced much higher than the expectations of the BCCI and business community and this would boost the private sector’s confidence,” he said, adding that the BCCI would continue to work closely with private sector by providing all possible support to keep the businesses afloat.
“In the light of the directives of His Royal Highness Prince Salman bin Hamad Al Khalifa, the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, who is closely monitoring the economic situation in the Kingdom since the outbreak of the Coronavirus, Bahrain has managed to put in place the mechanism as early in January to deal with the emerging situation of this pandemic,” he explained.
Globally, these are difficult times, he said, “but am sure that the way the Kingdom of Bahrain is responding to medical, economic and social needs to keep the impact of pandemic minimal, the economy will come back on its feet quickly once the medical fear subsides on the world stage.
On Tuesday, Bahrain announced unprecedented package of policy measures to directly support citizens, residents and businesses in the Kingdom. The BD4.3billion stimulus package is equivalent to 29.6% of Bahrain’s annual GDP. Unveiling the economic stimulus, the ministers announced an eight-point economic package that commits the government to:
1. Referring a draft law concerning paying the salaries of all private sector employees for three months from April 2020 from the unemployment fund, following constitutional procedures and in line with the Social Insurance Law.
2. Paying individuals’ and businesses’ Electricity and Water Authority utility bills for three months from April 2020 (up to the costs incurred during the same period in 2019), whilst also restructuring government administrative costs to offset additional costs incurred by the government.
3. Exempting all individuals and businesses from municipal fees for three months from April 2020
4. Exempting all businesses from industrial land rental fees for three months from April 2020
5. Exempting all tourism-related industry from tourism levies for three months from April 2020
6. Doubling the Liquidity Support Fund to BHD 200 million
7. Increasing the Central Bank of Bahrain’s loan facilities to BHD 3.7bn to allow debt instalments to be deferred and extra credit to be extended
8. The redirection of all Tamkeen programmes (semi-autonomous government agency that provides loans and assistance to businesses) to support adversely affected companies, as well as the restructuring of all debts issued by Tamkeen
The government ministers emphasised the commitment of the Kingdom’s leadership to supporting unprecedented circumstances with an unprecedented policy response, and to doing all within their power to protect the health, safety and prosperity of all those within the Kingdom.
A tribute was paid to His Majesty King Hamad bin Isa Al-Khalifa for the bold steps aimed to overcome current circumstances facing the Kingdom of Bahrain due to the novel coronavirus (COVID-19).
