SAMA package helps support private sector against COVID-19 impacts

SAMA announced a plan of action worth about $13.2mln

  
An employee counts Saudi Riyals bills at a money exchange office in central Cairo, Egypt, March 20, 2019. Image for illustrative purposes.

An employee counts Saudi Riyals bills at a money exchange office in central Cairo, Egypt, March 20, 2019. Image for illustrative purposes.

REUTERS/Mohamed Abd El Ghany

RIYADH — The Saudi Arabian Monetary Authority (SAMA) announced a plan of action worth about SR50 billion, in the first phase, aiming to provide the private sector with aid. This support plan is set in order to consolidate the private sector’s role in bolstering the national economic growth, through a program package of measurements, including supporting small and medium size establishments' funding.

The SAMA’s move falls in line with the government’s efforts to combat the financial and economic fallouts of COVID-19 pandemic on the private sector establishments, in furtherance to SAMA's paramount role in activating the monetary policy tools, cementing the fiscal stability and protecting the private sector activities, especially the micro, small and medium size enterprises' sector and to maintain their activities' continuity.

The program consists of three main components that aim at mitigating the fallout of precautionary measurements to combat coronavirus on the micro, small and medium size establishments sector, namely to mitigate the burdens of monetary flow fluctuation, backing up the standing and working capitals in the sector, and enabling it to grow during the next period, and to contribute in supporting the economic growth and maintain the levels of employment in the private sector.

SAMA’s sponsored program has also highlighted in delaying repayments by depositing about SR30 billion for the banks and funding companies against delaying repayments to the financial sector dues by the small and medium size sector for 6-month with immediate effect, and a program for funding lending and crediting through providing affordable financing for micro, small and medium size establishments worth SR13.2 billion.

© Copyright 2020 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.