Media ININ Economy We Trust
Riyadh, 14 March 2020, SPA
The Saudi Arabian Monetary Agency announced the preparation of a program whose value amounts to about (50) billion riyals, aimed at supporting the private sector and enabling it to play its role in promoting economic growth, in the framework of supporting the efforts of the state, “God bless it,” in combating the Corona virus (COVID- 19) Reducing its expected financial and economic effects on the private sector, especially on the SME sector, through a package of measures that includes the following:
First: Supporting financing for small and medium enterprises:
The program consists of three main elements; aimed at mitigating the effects of precautionary measures to combat the Corona virus on the SME sector, specifically reducing the burden of fluctuating cash flows and supporting working capital for this sector and enabling it to grow during the coming period and contribute to supporting economic growth and maintaining employment in the sector Private, includes the following:
Deferred Payments Program: Depositing up to (30) billion riyals in favor of banks and financing companies, in exchange for deferring the payment of the dues of the financial sector (banks and financing companies) for a period of six months on the SME sector starting from its date.
Funding for Lending Program: Providing concessional financing for small and medium enterprises amounting to (13.2) billion riyals, by granting loans from banks and financing companies to the SME sector aimed at supporting business continuity and growth of this sector during the current stage, including It contributes to supporting economic growth and maintaining the levels of employment in these establishments for a period of six months on the SME sector starting from its date.
Loan Guarantee Program: Depositing an amount of (6) billion riyals for the benefit of banks and financing companies to enable financing agencies (banks and financing companies) to exempt small and medium enterprises from the costs of the program of guarantees of financing small and medium enterprises loans (guarantee) with the purpose of Contribute to reducing the cost of lending to enterprises benefiting from these guarantees during the fiscal year 2020 and supporting the expansion of financing for a period of six months on the SME sector starting from its date.
Second: POS and e-commerce transaction fee support:
Supporting payment fees for all stores and private sector establishments for a period of (3) months, with a total value exceeding (800) million riyals, through which the Corporation bears these fees for the benefit of payment services providers participating in the national system.
Third: With regard to the enterprises affected by the precautionary measures that were adopted in the cities of Makkah Al-Mukarramah and Al-Madinah Al-Munawwarah, the “Foundation” is currently coordinating with banks and financing companies to facilitate payments related to financing these facilities.
In conclusion, the Saudi Arabian Monetary Agency confirms that the banking sector is still recording good performance indicators, which enhances its durability and makes it more able to face challenges and crises, and these indicators have positively reflected on the continued commercial banks in fulfilling their pivotal role in the economic development in the Kingdom, as well The Foundation affirms that it will continue to play its role in maintaining financial stability and increasing the efficiency of the financial sector to support the achievement of the Kingdom’s 2030 vision, to contribute – God willing – to the path of development and prosperity led by the Custodian of the Two Holy Mosques and His Highness the Crown Prince, may God protect them.
