King Salman orders the Saudi Central Bank to package new measures to support the economy
King Salman orders the Saudi Central Bank to package new measures to support the economy

According to the instructions of King Salman bin Abdulaziz, a few steps ago, the Saudi Arabian Monetary Agency took new executive steps and measures to revive the Saudi economy for fear of collapse, after the current crisis caused by the Corona virus and its impact on the economy in the Kingdom of Saudi Arabia.

In the margins of that urgent meeting, the Saudi Arabian Monetary Agency took these villages in order to support the economy of the state of Saudi Arabia, the purpose of which is to help banks, financing and leasing companies to overcome the repercussions of the crisis on the Saudi economy.

And according to what was monitored by "Al-Nasr newspaper" from a publication issued by the Central Bank in Saudi Arabia that was circulated on social media, the Saudi Arabian Monetary Agency decided to take a package of incentive measures as follows:

1- The Saudi Arabian Monetary Agency asked all Saudi banks to refrain from selling or implementing collateralized guarantees against loans and financing operations offered to clients, and this decision is excluded if the request for disposal is submitted by the customer in Saudi Arabia.

2- First, reduce the basic interest rate in Saudi Arabia and the discount rate by a quarter of a percentage point to 2.5% from 2.75% to boost growth in the Saudi economy.

3- The average interest rate in Saudi Arabia on this issue reached 2.5 percent, compared to 2.75 percent for the previous version.

4- All Saudi banks must, at the present time, respond to all requests to postpone the payment of interest and interest / profits of loans affected by the repercussions of the current situation in the Kingdom of Saudi Arabia, especially small and medium enterprises, and that period is six months with immediate effect and that does not affect its credit rating.

5- Reducing overnight deposits from 2.00% to 1.50% in all Saudi banks, and the interest rate on one-month deposits from 2.45% to 2.20%.

6- Lending facilities at 4.00% for all clients in Saudi Arabia.

7- All loans related to the financing of government projects in Saudi Arabia for the year 2020 CE are permitted from the credit rating, for a period of up to six months, in accordance with the instructions provided by the Saudi Central Bank in the circulars previously issued in that regard.

8- Generally consider reducing the fees imposed at the present time on all banking services in Saudi Arabia and not adding any new fees during the current year 2020 AD until further notice.

9 - Reducing the interest rate in Saudi Arabia on deducting Saudi government treasury bills by 100 basis points to one percent.

10 - Reducing the interest rate in Saudi Arabia on foreign exchange swaps by fifty basis points, and raising the maximum period for currency swap operations to six months.