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Saudi Shura Council Calls for More Loan Guarantees to Support Economy

Saudi Shura Council Calls for More Loan Guarantees to Support Economy

Thursday, 21 May, 2020 - 10:15
FILE PHOTO: A Saudi money exchanger wears a protective face mask and gloves as he counts Saudi riyal currency at a currency exchange shop in Riyadh, Saudi Arabia March 10, 2020. REUTERS/Ahmed Yosri/File Photo
Riyadh - Asharq Al-Awsat

The Saudi Shura Council has called for expanding the government’s loan guarantees, through the Kafalah Fund, to support the economy and SMEs, and improve development as part of efforts to confront the COVID-19 outbreak.

The Council’s Economic and Energy Committee held on Wednesday a virtual meeting, headed by its chair Dr. Faisal Al Fadel, with the participation of Chief Executive Officer at Kafalah Fund Homam Hashem.

The meeting discussed a program to confront the impact of the coronavirus pandemic on small and medium enterprises benefiting from the facilities provided by Kafalah.

The participants underlined the importance of the Fund in dealing with the failure of SMEs to pay their loans and the need to ensure that loan guarantees cover all businesses across the Kingdom, with the aim to achieve a balanced development in all regions.

The Kingdom has started implementing recommendations by the Saudi Arabian Monetary Authority (SAMA) to develop digital payment solutions that mainly promote economic development by increasing the effectiveness of financial transactions among all parties in the corporate and retail sectors.

The system would contribute to strengthening the digital infrastructure for electronic payments within the Kingdom.

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