Marcopolis presents the Bahrain Report focused on the investments, doing business, economy and other topics featuring interviews with key executives and government officials. The sectors under review are industry, telecom, banking sector, ICT, investments and more.
Developed in conjunction with Ext-Joom.com
Jamal Ali Al-Hazeem, CEO of BMI Bank, comments on the surge of non-performing loans in Bahrain.
He admits that there has been a surge in non-performing loans but thinks of it as a temporary issue " think that’s a temporary issue - because of the current situation it is understandable. If business lose their business, they are bound to default on loans and during times like this the financial institutions have to be very careful. They have to work with their clients instead of making the position worse than it is. At the same time, we expect the regulators to work with the financial institutions and the companies in Bahrain to resolve or at least overcome this temporary issue." he adds.
On the other hand, Al-Hazeem says, "We have seen it over the last two years, some companies have faced great difficulties. We work with them closely because we believe there are good people behind the business and the business is viable. It’s only a matter of time because of the situation Bahrain was going through. A number of them have already turned around and are becoming regular clients. They are honoring their commitment, they are carrying on the repayment of debt and their businesses are growing. As I said, if you have good people behind good projects, I think it’s a transitional period. You need to work with them, give them breathing time, support them and I think they will turn around. But there’s always going to be some people who will try to take advantage of the situation. Those are the ones that we are not willing to work with."