Echoing comments he made two weeks ago, Bahrain Central Bank Governor Rasheed Al-Maraj said on the sidelines of a regional central bankers’ meeting the country would still push forward with a planned $1 billion bond issue.

“We have not decided on the timing yet. The plan is still on but we will have to enter the market at the right time,” Maraj said.

He said Bahrain had not yet mandated banks for its planned $1 billion bond issue.

“This is part of our budgetary process,” Maraj said.

Bahrain is facing rising expenditures on social items such as subsidies and government houses in a bid to counter local protests.

Protesters emboldened by popular uprisings in Tunisia and Egypt took to the streets a month ago.

Al-Maraj also said Bahraini banks were operating normal.

Thousands of protesters occupy a central square in Manama and launch almost daily, but peaceful, marches to government buildings.

But bankers and analysts say Bahraini banks will be impacted by the impact as international banks could cut financing lines and local companies in particular in the tourism and retail sector could be forced into debt restructurings.

Rating agencies have lowered Bahrain’s sovereign ratings as well as their ratings on some Bahraini banks due to the unrest.

Retail lender Bahrain Islamic Bank postponed a planned $143 million rights issue planned for this week.

UAE Central Bank Governor Sultan Nasser Al0Suweidi also said the country had seen no capital outflows due to unrest in the region.