An emergency proposal to stop local banks from charging higher interest rates and administrative fees on existing loans was unanimously approved by MPs yesterday.
The proposal, led by five MPs led by Strategic Thinking Block spokesperson Khalid Bu Onk, will now be considered by the Cabinet.
This comes after MPs claimed they were inundated with calls from people who had seen their loan repayments increase significantly.
“In one case, a person who borrowed BD30,000 and was supposed to repay BD42,000 is now being asked to pay BD60,000,” said MP Mamdouh Al Saleh.
He added: “This is a clear violation of the loan agreement and the Central Bank of Bahrain (CBB) should intervene and take action.”
MP Hamad Al Doi said the issue was with the only two banks he named and signed loan agreements with.
He added: “These two banks told people that CBB had increased their home loans by about BD7,000 and BD15,000.”
“About 62,000 people referred by the Ministry of Housing and Urban Planning are currently suffering.”
Bu Onk said the bank claims people signed contracts that included a clause that the interest rate could change.
“People will sign for anything because they need money or a home. Instead of cutting installments and management fees, wealthy money-making banks are raising them.
“This has to stop.”
MPs also unanimously approved an emergency proposal to provide fishermen with automatic boat tracking devices and referred it to Cabinet.
Lawmaker Jalila Al Said said 90 fishermen were unable to go to sea because their “orange” tracking devices were damaged or lost.
“They asked the Coast Guard for a replacement, but the equipment is not available, leaving 90 fishermen out of work.”
Parliament Speaker Ahmed al-Musallam said he was personally following up with the Interior Ministry and was asking for a week for a response.
MP Abdullah Al Dayen suggested that the government should move to phone tracking apps, saying they are much cheaper and more efficient.
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