Al-Jadaan: Supporting banks, financial institutions and small enterprises by 50 billion riyals
The Saudi Minister of Finance, and the Minister of Economy and Planning, Muhammad Al-Jadaan revealed that the government has taken a number of precautionary measures to contribute to protecting citizens and residents in the Kingdom, and provide the financial requirements necessary to implement preventive and direct measures to deal with the consequences of the epidemic and work to limit its spread and ensure the continuity of the work of government agencies.
He stressed that the health and safety of citizens and residents comes first in the priorities of government action, and that the government will provide all the additional credits required for the health sector, and provide the necessary health services for prevention, treatment and non-proliferation.
Al-Jadaan said: “The government has prepared urgent initiatives to support the private sector, especially small and medium enterprises and economic activities most affected by the consequences of this epidemic, as the size of these initiatives reaches more than 70 billion riyals, and is exemptions and postponements of some government dues to provide liquidity to the private sector.” To be able to use it in managing its economic activities, in addition to the support program announced by the Saudi Arabian Monetary Agency to banks and financial institutions, and small and medium enterprises at an amount of 50 billion riyals at the current stage. “
8 urgent initiatives
1- Exemption from financial compensation for expatriates whose residency expired from its date until 30 June 2020, by extending their residency period for a period of three months without consideration.
2- Enabling employers to recover the issued work visa fees that were not exploited during the period of the entry and exit ban, even if they were stamped in the passport, or extended for a period of three months without consideration.
3- Enabling employers to extend exit and return visas that were not used during the period of the ban on entry and exit from the Kingdom for a period of three months without charge.
4- Enabling business owners, for a period of three months, to postpone the supply of value-added tax, selective goods tax and income tax, postpone the submission of Zakat declarations and postpone the payment of obligations due therefrom, and grant zakat certificates without restrictions for the period of approval of the fiscal year 2019, and expand to accept installment requests without stipulating a requirement Provided by the General Authority of Zakat and Income Tax, in addition to postponing the implementation of the procedures to stop services and seizing funds from the General Authority of Zakat and Income Tax, and setting the necessary standards to extend the postponement period for the most affected activities as needed.
5- Postponing the collection of customs duties on imports for a period of thirty days in exchange for providing a bank guarantee, for the next three months, and setting the necessary standards to extend the delay period for the most affected activities as needed.
6- Postponing the payment of some government services fees and municipal fees due on private sector establishments, for a period of three months, and setting the necessary criteria to extend the delay period for the most affected activities as needed.
7- Authorizing the Minister of Finance to approve lending and other forms of financing and exemption from payment of fees and returns on loans granted until the end of the year 2020 AD, for the Corporate Sustainability Program initiative.
8- Forming a committee chaired by the Minister of Finance and the membership of each of the Minister of Economy and Planning, the Minister of Commerce, the Minister of Industry and Mineral Resources, the Vice Chairman of the National Development Fund and the Governor of the National Development Fund; it undertakes the following:
The most prominent tasks of this committee
– Determining incentives, facilities, and other initiatives led by the National Development Fund or any of its funds and banks, with the aim of alleviating the extraordinary economic situation, in light of the implications of the Corona virus, and the impact of the precautionary measures taken by the Kingdom’s government and the low oil prices, and reviewing them.
Define and design design criteria and controls for implementing initiatives.
– Determine the amounts that will be used to support these initiatives from the funds available at the funds and banks of the National Development Fund for this purpose and as needed.
– The committee may conduct transfers between these funds and banks and the Saudi Export-Import Bank as needed.
– The committee may direct both the Kafala program and the General Authority for small and medium enterprises to develop the necessary initiatives to support this purpose in this exceptional stage, and to support them from the funds available at the funds and banks of the National Development Fund as needed.
Financing the private sector, especially small and medium enterprises
According to the statement of the Ministry of Finance, the government decided to use the tools available to finance the private sector, especially small and medium enterprises, in addition to strengthening support programs to mitigate the impact on the private sector and economic activities, and to ensure the promotion of financial stability, and the government confirms its keenness to pay the dues in accordance with their deadlines, in addition to measures that Maintains the integrity of the financial sector.
Diversification of funding sources between public debt and government reserves
The Minister of Finance affirmed that the government has the ability to diversify funding sources between public debt and government reserves to enable it to deal with emerging challenges, and allows positive intervention in the economy through appropriate channels and times, while limiting the impact on the government’s goals in maintaining financial sustainability and economic stability. In the medium and long term.
He added that some of the budget allocations will be reviewed and reoriented to the sectors most in need under the current circumstances, including allocating additional amounts to the health sector as needed. An emergency budget is also allocated to cover any costs that may arise during the developments of this global event.