By Bernd Debusmann Jr
The stimulus package is equivalent to 29.6% of Bahrain's annual GDP
The government of Bahrain has announced an $11.38 billion economic stimulus package to support its citizens and the private sector amid the ongoing coronavirus pandemic.
The stimulus package is equivalent to 29.6 percent of Bahrain’s annual GDP.
The eight-point package includes a draft law – not yet passed – that concerns 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 country’s social insurance law.
Additionally, all water and utility bills will be paid for three months from April, up to the cost incurred during the same period in 2019.
Individuals and businesses will also be exempt from municipal and industrial land rental fees for three months, while tourism-related companies will be except from tourism levies.
Bahrain’s liquidity fund will also be doubled to $529.7 million, while the Central Bank’s loan facilities will be increased to $9.7bn to allow debt instalments to be deferred and extra credit to be extended.
Lastly, Tamkeen – a semi-autonomous government agency that provides loans and assistance to business – has been tasked with supporting adversely affected companies and restricting al the debts it has issued.
There have been 241 confirmed cases of coronavirus in Bahrain, including one death.finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.