Debt instalments deferred for all individuals losing jobs due to coronavirus: SAMA

The Saudi Arabian Monetary Authority (SAMA) deferred loan installments for all individuals, who lost their jobs directly or indirectly due to the coronavirus outbreak, including borrowers and free professions, Ahmed Alkholifey, the central bank Governor, told Al-Arabiya TV.

Installments of all financing products will be deferred, without additional charges for 6 months, Alkholifey further noted.

SAMA’s first support package was directed to small and medium enterprises (SMEs) and microfinance businesses, while the scheme announced yesterday included all the private sector entities.

There is a need to support the private sector’s large companies and SMEs, Alkholifey said, adding that this move entails support for individuals to maintain their employment. Moreover, 6-month concessional loans have been provided for those entities.

The governor also added that SAMA has taken proactive measures to alleviate the impact of lower cash flows and support working capital of all enterprises. “These measures aimed mainly to maintain employment in light of the coronavirus outbreak fallout.”

The measures aimed to allow those enterprises to restructure the outstanding loans without additional charges.

SAMA has focused on banks to mitigate the coronavirus negative impact, Alkholifey continued.

The local banking sector has strong liquidity, he emphasized, noting that Saudi Arabia’s banks are well positioned to weather potential challenges and serve the Kingdom’s economy.

Commenting on policy rates, the governor concluded that SAMA does not have to cut interest at a certain percentage, to maintain FX rates.

SAMA launched an SAR 50 billion financing package to support the private sector, especially the small and medium enterprises (SMEs), and mitigate the potential economic impacts of the coronavirus outbreak, Argaam earlier reported.