SAMA takes additional precautionary measures amid COVID-19 outbreak

Saudi Arabian Monetary Authority (SAMA), the Kingdom's central bank, took a new bundle of precautionary measures to combat the impact of the COVID-19 outbreak on different economic sectors.

These preventive measures include supporting banks to provide highest-quality banking services and fulfill clients' financing needs.

The Kingdom's central bank also instructed local lenders to announce some measures to help mitigate the impact of the coronavirus spread on clients, as well as helping private sector entities stand lower cash flows.

These measures include:

- Amending or restructuring outstanding credit facilities with no interest or additional fees;

- Providing funding for retail clients who lost their jobs at private sector entities;

- Exempting all clients from fees imposed on online transactions and other charges;

- Re-assessing current interest rates and other fees on credit cards for new or existing clients;

- Refunding currency conversion fees on cards, if requested by the client.

The Saudi central bank expressed keenness to maintain the Kingdom's financial position, solvency, resilience and capital adequacy ratio.

Saudi Arabia's central bank said on Saturday it had prepared a SAR 50billion ($13 billion) package to help small and medium-sized enterprises cope with the economic impact of the coronavirus outbreak.

SAMA funding is aimed at granting SMEs six-month deferrals on bank payments, concessional financing and exemptions from the costs of a loan guarantee program.