By Innovation-sa on March 15, 2020 in News
The Saudi Arabian Monetary Authority (SAMA) revealed an SR50 billion economic stimulus program to support private sector businesses as the country is taking all possible measures to combat the potential impact of the novel coronavirus outbreak on the Saudi economy.
The financial package aims to support the private sector, especially the small and medium-sized enterprises (SMEs) by alleviating the negative impact on their businesses, especially volatility in cash flows, due to strict precautionary measures adopted by authorities to control the pandemic and to support points of sale (POS) and e-commerce transaction fee. Under the new package, SR 30 billion will be made available to banks and financial institutions for deferred payments of SMEs for six months with immediate effect, concessional loans worth up to SR 13.2 billion will be provided to SMEs to maintain their operations, contribute to economic growth and maintain employment rates at these facilities, and businesses will also be supported through an SR 6 billion loan guarantee program.
The stimulus package will also include an SR800 million funding to ensure that SAMA will cover payment fees for all private-sector stores and facilities for a three month period. SAMA will pay fees for service providers registered in the national system.
SAMA will also coordinate with banks and financial institutions to facilitate payment of loans with regards to businesses and companies affected by precautionary measures adopted in the holy cities of Makkah and Madinah. SAMA added that the kingdom’s banking sector is still recording good performance indicators, enhancing it’s durability and making it more capable to face challenges and critical situations.