Saudi Arabia pumps 13.3 billion USD into banking sector

In the wake of the economic crisis generated as a result of the coronavirus pandemic, that has hit hard all sectors of the economy, especially the oil-sector, Saudi Arabia has announced the pumping of 50 billion riyals (13.3 billion U.S. dollars) into the banking system.

The announcement came on June 1 on the part of the Saudi Arabian Monetary Authority (SAMA). The decision of SAMA comes to manage the fallout from the coronavirus and the drop in oil prices.

The infused amount will help banks amend restructure loans without additional fees, boost credit facilities to the private sector and aid the private sector employment.

SAMA has been aiding private businesses in the country, mostly small businesses and had previously unveiled a 50-billion-riyal programme for the same purpose.

Apart from it, Saudi Arabia has reduced state expenditures and increased the percentage of the value-added tax (VAT) from five to 15 percent.

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