Saudi Arabian Monetary Authority to Inject SAR 50 Billion to Boost the Banking Sector

The Saudi Arabian Monetary Authority (SAMA) will inject SAR 50 billion into the banking system to overcome the impacts of the drop in oil prices and the COVID-19 pandemic by enhancing financial stability and increasing lending capacity to the private sector.

According to the SAMA, the program intends to help banks restructure or adjust private sector debts without additional charges, as well as to sustain employment levels and offer certain e-services free of charge.

The COVID-19 pandemic is expected to cause the banking sector to experience a reduction in activity in 2020, along with a negative impact on profits and increased default rates. In addition, the fall in oil prices are ex...