SAMA “The Saudi Arabian Monetary Authority” announced a plan of action worth about SAR50bn, in the first phase. This is with the aim 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. This is through a program package of measurements, including supporting small and medium size establishments’ funding.
The SAMA’s boosts the government’s efforts to combat the economic fallouts of COVID-19 pandemic on the private sector establishments. This is in furtherance to SAMA’s paramount role in activating the monetary policy tools. Besides, 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.