Zahra Habib
To reduce “retrieval cases”
The Shura Council votes in its next session on Sunday the report of the Financial and Economic Affairs Committee on a draft law to amend some provisions of the Trade Law issued by Decree No. (7) of 1987, accompanying Decree No. (44) of 2024, related to activating the partial loyalty of checks.
The draft law aims to introduce amendments to the third chapter of the fourth chapter on the check, to address the challenges revealed by the practical reality, and to enhance the flexibility of the check as a fulfillment tool while preserving its legal strength.
The amendments included enabling the Central Bank of Bahrain to determine the stages of the application of partial loyalty in coordination with the relevant authorities, after verifying the technical readiness of banking institutions.
The Financial and Economic Affairs Committee emphasized that the draft law contributes to ensuring the smooth flow of checks, and the beneficiary allows the collection of part of its value when the balance is insufficient, which reduces the cases of returned checks and enhances confidence in dealing with them, in addition to stimulating the economic cycle through the recycling of funds.
The committee clarified that the project is in line with the modern legislative trend in the Kingdom of Bahrain based on crime prevention and reducing resorting to criminal accountability, without prejudice to the right of the beneficiary to take the necessary legal measures when needed.
The committee concluded that the draft law in principle, and its articles, as mentioned, in line with the decision of the House of Representatives.
