SAMA extends deferred payment program for impacted MSMEs by another 3 months

The Saudi Central Bank (SAMA) extended the deferred payment program for the impacted micro, small and medium enterprises (MSMEs) that are still impacted by the COVID-19 precautionary measures for three additional months from July 01, 2021 to September 30, 2021.

The extension of the program is consistent with the Saudi Central Bank's mandate to maintain financial sector stability, and to enable financial institutions to support economic growth and employment levels in the private sector, SAMA said in a statement.

SAMA clarified that during this extension MSMEs will be subject to the assessment by the financing entities on the extent to which these MSMEs are still affected by the COVID-19 precautionary measures, in order to be qualified for the extension. This also applies to qualified MSMEs impacted by the preventive measures to protect the health and safety of pilgrims, in accordance with the Deferred Payment Program guidelines.

Since its launch on March 14, 2020, to date, the Deferred Payment Program has benefited more than 106,000 contracts with a total value of deferred payments worth SAR 167 billion.

Meanwhile, the number of contracts benefiting from the Guaranteed Financing Program has exceeded 5,282 contracts, with a total financing value of more than SAR 10 billion.

The purpose of those programs are to support the liquidity level in the financial sector (banks and finance companies) and to enable the financial sector to ease the economic impact of the COVID-19 precautionary measures on the private sector, especially the MSMEs sector, SAMA added.

In March 2020, SAMA, formerly the Saudi Arabian Monetary Authority, 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 reported.