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Saudi Central Bank Extends Deferred Payment Program for Private Sector MSMEs

The Saudi central bank.
The Saudi central bank.
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Saudi Central Bank Extends Deferred Payment Program for Private Sector MSMEs

The Saudi central bank.
The Saudi central bank.

With the Saudi economy set on a dynamic track to return to pre-pandemic levels, the Saudi central bank (SAMA) said on Tuesday it is extending a deferred payment program to help small businesses impacted by the coronavirus crisis by another period of three months, starting July 1.

The program - meant to support micro, small, and medium enterprises (MSMEs) affected by precautionary measures during the COVID-19 pandemic - was launched in March 2020.

Moreover, SAMA reaffirmed its keenness to maintain stability in the Kingdom’s financial sector.

SAMA clarified that during this extension MSMEs will be subject to assessment by the financing entities on the extent to which they are still affected by the COVID-19 precautionary measures, in order to be qualified for the extension.

It is worth noting that, since its launch on March 14, 2020 to date, the Deferred Payment Program has benefited more than 106,000 contracts with a total value of deferred payments worth SAR 167 billion.

The number of contracts benefiting from the Guaranteed Financing Program has exceeded 5,282 with a total financing value of more than SAR 10 billion.

The purpose of those programs is to support the liquidity level in the financial sector (banks and finance companies) and to enable the financial sector to ease the economic impact of the COVID-19 precautionary measures on the private sector, especially the MSMEs.

Last March, SAMA announced an extension of the program for three months, ending at Q2 2021. The same reasons for this month’s extension applied then.

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US Trade Delegation in Iraq to Boost Economic Ties

Iraqis walk through the book market in the Mutanabi Street of Baghdad, Iraq, Friday, April 4, 2025. (AP)
Iraqis walk through the book market in the Mutanabi Street of Baghdad, Iraq, Friday, April 4, 2025. (AP)
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20
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US Trade Delegation in Iraq to Boost Economic Ties

Iraqis walk through the book market in the Mutanabi Street of Baghdad, Iraq, Friday, April 4, 2025. (AP)
Iraqis walk through the book market in the Mutanabi Street of Baghdad, Iraq, Friday, April 4, 2025. (AP)

A US trade delegation representing 60 companies was visiting Iraq to sign economic cooperation agreements with the private sector, Washington's embassy in Baghdad said Tuesday.

The three-day visit, which began on Monday, comes amid fears of an international recession after US President Donald Trump imposed sweeping tariffs on numerous countries, which included 39 percent duties on Iraqi imports.

The US delegation consists of 101 members from 60 companies in the energy, technology and health sectors, who are set to meet with senior Iraqi officials and sign agreements, said an embassy statement to AFP.

It is the largest US trade mission to Iraq in the more than 100-year history of the United States Chamber of Commerce, the embassy added.

In a post on X, the US mission said that a "pivotal memorandum of understanding to strengthen ties between the US and Iraqi private sectors" was signed on Monday between the US Chamber of Commerce and the Federation of Iraqi Chambers of Commerce.

"This partnership will foster long-term economic collaboration," it said.

According to the office of the US trade representative in Iraq, total goods trade with the oil-rich country reached $9.1 billion in 2024, with US exports amounting to $1.7 billion.

US goods imports from Iraq totaled $7.4 billion.

During the visit, Iraq is expected to sign a "landmark agreement" with General Electric to develop a high-efficiency power plant, according to Farhad Alaaldin, foreign policy adviser to the Iraqi Prime Minister Mohammed Shia al-Sudani.

Last year, during Sudani's visit to Washington, Iraq and the United States signed several memoranda of understanding in the energy sector, including one with General Electric to ensure the maintenance of the Iraqi electricity grid.

Iraq's power plants are currently highly dependent on gas imported from Iran, which provides about a third of its neighbor's energy needs.

But Tehran has often cut supplies, exacerbating regular power outages.

Baghdad has repeatedly stressed the need to diversify energy sources to reduce its dependence on Iran.

Iraq has been trying to move past decades of war and unrest, including a sectarian struggle after the US-led invasion 2003 toppled Saddam Hussein.