Arab News, Monday, Mar 8, 2021 | Rajab 24, 1442
Saudi central bank extends deferred payment, guaranteed financing programs
Saudi Arabia: Saudi Arabia’s central bank (SAMA) said on
Sunday that it had extended a deferred payment program to support private sector
financing for an additional three months until June 30 as part of measures to
stem the impact of the coronavirus pandemic on the economy.
SAMA said that the decision aims “to empower the financial sector to play its
role in supporting the micro, small and medium-sized enterprises (MSMEs) sector,
and contribute to supporting economic growth and preserving employment in the
private sector.”
A statement published on the central bank website also said a guaranteed
financing program had been extended for an additional year until March 14, 2022
to support small and medium enterprises.
SAMA said the extensions are also aimed at enhancing the central bank’s
contribution in supporting MSMEs, and enabling them to overcome the challenges
that accompanied the COVID-19 pandemic and the precautionary measures adopted to
confront them.
The decision is in line with the central bank’s role in “maintaining monetary
stability, supporting the stability of the financial sector, enhancing
confidence, supporting economic growth, and mitigating the financial and
economic effects of the coronavirus pandemic on various economic activities.”
SAMA said around 99,000 contracts have benefited from the deferred payment
program since March 14, 2020, amounting to SR124 billion ($33.04 billion).
It also said that over 5,000 contracts benefited from the guaranteed financing
program, valuing over SR8 billion.