Saudi Arabia Announces $178 Million Loan Deferral Initiative for Business

Saudi Arabia Announces $178 Million Loan Deferral Initiative for Business

Published July 14th, 2020 - 06:30 GMT











Highlights





The Saudi Ministry of Finance's corporate sustainability program will ease loan requirements to support projects for 192 companies employing over 20,000 Saudis across different industries







Saudi Arabia has launched an SR670 million ($178 million) initiative to help businesses in the Kingdom defer loan installments due this year amid economic uncertainty caused by the COVID-19 pandemic.

The Saudi Ministry of Finance's corporate sustainability program will ease loan requirements to support projects for 192 companies employing over 20,000 Saudis across different industries. The ministry launched the program to support the private sector and reduce the financial and economic impact of the pandemic.

Mohammed Alomran, a financial analyst and president of Gulf Center for Financial Consultancy, said the initiative will have long-term benefits.

"This initiative comes within a package of stimulus plans to boost private sector growth and maintain the Saudi workforce as these entities encounter the COVID-19 crisis,“ he said.

The ministry has launched more than 15 programs to promote economic recovery in the wake of the pandemic. Alomar expects, even more, to be launched in response to the challenges facing the private sector. The initiative may worry some companies concerned