Bahrain banks have been urged to join forces with the private sector to adopt bold initiatives aimed at ensuring continuous economic and trade momentum.

"Such an alliance would insulate these vital economic pillars from the detrimental repercussions of the global meltdown," Prime Minister Shaikh Khalifa bin Salman Al Khalifa said.

He was speaking as he received board members of the Bahrain Chamber of Commerce and Industry and heads of leading commercial banks.

The move was part of the government's efforts and plans to deal with fallout from the global credit crunch.

It is the continuation of a drive aimed at fostering propitious conditions for the government's programmes to stimulate the national economy and maintain growth dynamics, he said.

Consolidating the role of the private sector, and expanding its partnership with banking and financial institutions were cited as key steps to absorb any detrimental repercussions resulting from the spiralling global crisis.

The Premier called for new joint innovative programmes and conciliatory orientations to maintain the continuous flow of foreign capital.

Such a trend, the Premier said, would also secure necessary funding for private projects.

Medium and small businesses were singled out as being too vulnerable to withstand fallout of the global meltdown.

The Premier urged more co-operation, dialogue and understanding between the Central Bank of Bahrain, commercial banks and businessmen.

"Maintaining the growth momentum is a necessary prerequisite for Bahrain to preserve economic stability," he said. "Such an objective requires stronger co-operation and deeper osmosis between banks and the private sector." - TradeArabia News Service