Saudi Banks Committee says Coronavirus did not impact banks’ performance

The Media and Banking Awareness Committee of Saudi Banks confirmed that the coronavirus outbreak did not yet impact the financial performance of banks operating in Saudi Arabia.

The committee praised the immediate implementation of the Saudi Arabian Monetary Authority’s (SAMA) program to support the private sector, especially the small and medium enterprises (SMEs).

The banking sector enjoys full capacity to provide services in the usual manner, considering the government’s efforts to curb the spread of coronavirus.

According to data compiled by Argaam, SAMA launched a SAR 50 billion financing package to support the private sector, especially the SMEs, and mitigate the potential economic impacts of the coronavirus outbreak.

The program focuses on alleviating the impact of precautionary measures adopted to combat the coronavirus on SMEs, mainly volatility in cash flows. It also aims to support working capital, contribute to local economic growth and maintain employment rates in the private sector.

Under the new scheme, up to SAR 30 billion funding will be used by all banks and finance institutions to defer payments owed by SMEs for 6 months with immediate effect.