Bahrain’s Council of Representatives is preparing to debate a parliamentary proposal aimed at reducing the minimum monthly repayment required on credit card bills, a development that could be relevant to citizens and expatriate residents managing financial commitments through credit cards. The proposal has attracted attention from the banking sector, with concerns raised about its potential long-term impact on consumer debt and financial stability.

According to reports published by Bahraini newspapers on Saturday, October 24, 2026, lawmakers are scheduled to consider the proposal during their session on Tuesday, October 27. Submitted by MP Mohammed Yousif Al Maarafi, the initiative calls for the government to direct the Central Bank of Bahrain to reduce the minimum required repayment on credit card statements from the existing proposed benchmark of 5% to 2.5%.

The proposal also seeks to standardize credit card statement dates across banks and licensed card issuers, setting the 20th day of every calendar month as the common billing date. In addition, it calls for extending the payment grace period until the next monthly statement is issued. Supporters argue that these measures could help customers plan their monthly finances more effectively and reduce confusion arising from different billing schedules.

The explanatory memorandum accompanying the initiative states that smaller minimum payments could ease immediate financial pressure on individuals with limited incomes and households facing regular monthly expenses. It also refers to a 2.5% minimum payment rate currently available to pensioners and proposes extending a similar arrangement to credit card customers more broadly, subject to the relevant regulatory process.

The parliamentary Financial and Economic Affairs Committee has recommended approval of the proposal. However, the Bahrain Association of Banks has expressed reservations about imposing the same lower repayment percentage on every financial institution. Instead, the association has suggested allowing banks to offer the reduced minimum at their discretion, based on their credit policies and risk management assessments.

The association warned that reducing minimum monthly repayments could prolong outstanding balances and lead to higher cumulative interest costs for customers. It also highlighted possible reductions in available credit limits, increased exposure to loan defaults and additional administrative requirements for banks, including adjustments to credit management systems and debt collection procedures.

For citizens and expatriate residents holding credit cards in Bahrain, the parliamentary discussion is worth following, but it does not mean that the proposed changes have already taken effect. Existing repayment requirements and billing arrangements remain subject to the applicable terms of individual financial institutions unless the competent authorities formally approve and implement new regulations.

The upcoming parliamentary debate is expected to examine the balance between greater repayment flexibility for customers and the risks associated with longer borrowing periods. Cardholders should continue following their existing payment schedules and avoid treating the proposed 2.5% minimum repayment rate as an enforceable regulatory change before any official implementation is announced.

Source: Al Ayam Newspaper