New Sharia-compliant enterprise financing scheme launched
- Bahrain: Tuesday, November 23 - 2010 at 12:45
- PRESS RELEASE
Bahraini retail and commercial banking institution, BMI Bank and Tamkeen today announced the launch of a Sharia-compliant financing scheme for enterprises within the local private sector to bolster the segment within the country. Created in partnership with Tamkeen, the scheme will offer a suite of Sharia-compliant financial products under the umbrella of the Islamic Financial Services division within the bank.
We are proud to partner Tamkeen in this scheme and look forward to building our relationship through the introduction of similar programs and schemes in future that are developed to drive increased productivity and improved efficiency in businesses within Bahrain. "
Tamkeen's Senior Manager for Private Sector Support Mr. Mohammed Bucheery said, "Tamkeen is focused on building new financial tools that will give enterprises and Bahraini entrepreneurs access to new growth strategies and strengthen their contribution to the Kingdom's future. We look forward to strengthening our strategic partnership with BMI and are keen that other financial institutions also take up the initiative of creating such opportunities that will be of benefit to all stakeholders."
As part of the agreement, Tamkeen will guarantee 50% of the total financing amount as well as subsidize 50% of the profit payments due from customers. Through this financing scheme, enterprises within the private sector will be eligible to receive financing ranging from BD 10,000 to BD 500,000 to help design a higher growth trajectory for their companies. This scheme offers a range of trade finance products such as letters of credit and guarantee, Murabaha financing which covers working capital, auto and equipment financing as well as Ijara financing at a subsidized profit rate of 4% per annum on reducing balance with an option of a longer repayment tenor of up to 10 years.
"This scheme is the outcome of BMI Bank sharing Tamkeen's vision to promote and develop the private sector enterprise segment within the Kingdom. Through Tamkeen, Bahrain has been actively and progressively taking steps to widen the space for the enterprises to flourish whilst building the overall economy and through this new offering I am confident that we will be able to play our part in the growth of Bahrain's private sector enterprises segment." said Salah Khalifa, Head of BMI's Islamic Financial Services.
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