Saudi Arabia to pump 13.3 bln USD into banking system

Saudi Arabia announced on Monday the pumping of 50 billion riyals (13.3 billion U.S. dollars) into the banking system, the Arabiya TV reported.

The Saudi Arabian Monetary Authority’s (SAMA) decision comes to manage the fallout from the coronavirus and the drop in oil prices.

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

SAMA had previously unveiled a 50-billion-riyal program to help mostly small private businesses in the country.

Saudi Arabia has been taking solid steps to reduce the economic implications of the spread of coronavirus, including reducing state expenditures and increasing the percentage of the value-added tax (VAT) from 5 to 15 percent.