Saudi Central Bank plans to extend payment deferrals until Q1 2021-end

The Saudi Central Bank (SAMA) is considering continuing its deferred payment program until Q1 2021-end, Al-Arabiya TV reported, citing governor Ahmed Alkholifey.

He indicated that the effects of COVID-19 pandemic are still present, adding that SAMA closely monitors the quality of the asset across all economic activities and noticed an increase in non-performing loans from 1.9% to 2.3%.

“We still hope to mitigate the pandemic effects through the programs launched by SAMA, as the challenge remains how to get out of the pandemic with minimal consequences,” he stated.

SAMA governor stressed that there is no need to increase liquidity in the banking sector, as it is very high.

Last September, the central bank decided to extend the deferred payments program for three more months until Dec. 14, 2020.