An assessment on the impacts of loan deferrals in Bahrain

An assessment on the impacts of loan deferrals in Bahrain

May 31, 2021

In March 2020, and subsequently in September 2020 and January 2021, the Central Bank of Bahrain instructed banks operating in the Kingdom of Bahrain to offer Bahraini debtors the opportunity to defer the repayment of loans and, in the first of these three deferral decisions, to do so without incurring any interest. This paper analyses the impact of the first two of these three deferrals on Bahraini households using a combination of quantitative and qualitative data gathered from telephone surveys with over 100 Bahrainis. It also presents recommendations for future decisions.

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