The Strategist

Central Bank of Saudi Arabia will provide banks with $13.3B to combat COVID-19 crisis

06/01/2020 - 08:48

The Saudi Arabian Monetary Authority, the Central Bank of Saudi Arabia, will send 50 billion riyals ($ 13.3 billion) to the country's banking system to help combat the effects of the coronavirus pandemic COVID-19 and falling oil prices.

The central bank will support financial stability and expand lending opportunities for the private sector, reads its statement. This step aims to help banks offset and restructure loans without additional fees, as well as support private sector employment. 

In March, the Central Bank called on banks to implement a lending program for at least six months to help maintain employment levels. This was reported in a document sent by the regulator to banks, which was reviewed by Bloomberg. Earlier, the Saudi Arabian Monetary Authority announced a program of assistance to private business in the country amounting to 50 billion riyals.