The Kingdom may increase debt issuances by 100 billion riyals, bringing the total to 220 billion riyals
Finance Minister Mohamed Al-Jadaan announced that the Saudi government is conducting intensive studies to restore the economy’s movement if health conditions permit, explaining that there are committees working on a set of paths, the first is health, and the second point is gradualism, and the opening will be under health control, and it is important that people are aware that Any measures to open the economy may be followed by the re-closure as it warns of in international experiences, and we are working with a number of countries in coordinating such experiences regarding opening the economy.
Al-Jadaan said in a press conference in Riyadh devoted to the developments of the Corona pandemic, today, Wednesday, that the government provided the directives of the Custodian of the Two Holy Mosques and his heir, 47 billion riyals to the Ministry of Health, and part of it was actually used and supplies were purchased including the requirements that the whole world demanded, and the demand for it has become high Globally, affirming that the Kingdom has spared no effort and made precious and precious efforts to ensure that its citizens enjoy the highest standards of health and preventive care, as the primary concern for the leadership of the Kingdom is the health of the citizen.
New debt issues
He revealed that the Kingdom may increase debt issuances until it reaches 100 billion riyals, to be added to the previous 120 billion riyals, bringing the total to 220 billion riyals, along with drawing from reserves as per the scheduler, according to what was announced within the budget, explaining that “there are projects we have seen their effects in 2019 When the private sector financed it with large sums, we look at the aspects in which we can reduce spending due to circumstances or expenditures that can be deferred. “
He expressed his understanding of the effects of preventive measures on the work of the private sector, but the government invested large sums in digital infrastructure, enabling state institutions to work remotely, with what proved to be business continuity during the crisis period, and this was reflected in the Ministry of Finance for example, Through the presence of a coordination team, to ensure that the dues of the private sector are paid and their documents submitted electronically, and we coordinated with various government agencies, and if it is not possible to raise some abstracts or bills electronically, this can be done in a way that guarantees partial disbursement to assist the private sector in these circumstances.
Full support to the private sector
He explained that “all ministries, myself and the ministers, are in continuous communication with the private sector to ensure that any challenges they face are addressed at this stage, because everyone is interested in supporting the private sector, as it is the contributor to the economic movement, and he is the employee of the citizen. We stood beside the private sector and we did not stand beside him and we will continue in that”.
He stated that there are government expenditures that will be postponed due to the current conditions, such as travel and leisure activities, etc., announcing the study of postponing government rents to the private sector or even giving up part of it, which will have an impact in the private sector as well, and we have seen initiatives that demonstrate the solidarity of the private sector with this Regard and in these exceptional circumstances.
He said that the Supreme Coordination Committee chaired by the Crown Prince reviews the work on the initiatives that were taking place effectively, and formed a committee to consider the requests of funds for additional funding to provide support in the private sector from the industrial sectors, and more than 14 billion additional riyals were provided to the private sector, revealing that the decisions are fast very.
Al-Jadaan revealed that there are continuous studies to reconsider and amend some initiatives and convert them from postponing to an exemption from fees or money, or dues. The extension is being studied from 3 months to 6 months or 9 months until the end of the year, and this is only in the sectors most affected by the Corona pandemic. He explained that the developments are taking place quickly through direct response and directives from the wise leadership, and the committee will continue to study any additional initiatives.
He pointed to the study of additional initiatives in the transport sectors, especially air transport, tourism, hotels, sectors most affected and industry, and during the past few days, a set of decisions was issued to reduce electricity bills for the industrial and commercial sectors by 30%.
Pay 200 billion riyals
He revealed that the Ministry of Finance paid all the dues of the private sector during a period of 30 days with amounts amounting to more than 200 billion riyals, and the Ministry of Finance announced several days ago to pay the dues of the private sector that reached the ministry until the end of last month, and we paid 23 billion riyals of dues to the private sector during The first quarter, as 87% of the sums were paid within 30 days, and the rest of them were paid during the regular period of 60 days.
Al-Jadaan said in the press conference devoted to the media briefing on the developments of the new Corona virus (Covid 19), that the great packages and initiatives taken under the guidance of the rational leadership, came a desire to enable the various state institutions, and private sector facilities, in the face of this pandemic.
He stressed that all procedures have proven that “the citizen is the first concern and the employee in the private sector is the first concern, and therefore numerous initiatives and economic packages came, including the initiatives of the Monetary Agency, including the” Sand “initiative for employee wages, and the system was modified in 48 hours, and the system usually takes For a long time, and due to the exceptional circumstances, the Custodian of the Two Holy Mosques was ordered to amend the system, to provide 9 billion riyals in compensation to more than 1.2 million citizens in the facilities affected by the Corona crisis.
He said that the government decided to “pay to 60% of the employee’s salary in the private sector, and the Monetary Agency coordinated with banks not to make deductions from these amounts according to the financing products granted to borrowers, so that we do not overburden the employee whose salary is being funded by the Social Insurance Corporation.”
He stated that the Saudi government had continued its work in controlling the public finances, which achieved the goals by the end of 2019, and achieved its goals in increasing non-oil revenues, which grew by 13% in the same year, considering that these previous measures enabled the government to deal strongly with the current crisis.
He added that this growth in the Saudi economy, in the past year, came in line with a healthy economic activity that increased the gross domestic product by a percentage that we had not seen in previous years, and was the largest increase in GDP in 5 years.
He said that the measures taken by the Kingdom to support the private and non-oil sectors were led by the Crown Prince, President of the Economic Affairs Council, Prince Muhammad bin Salman.
He added that the Kingdom has reserves that are the third in the world in the value of reserves. At the beginning of the crisis, the Custodian of the Two Holy Mosques King Salman bin Abdulaziz was instructed to form teams to deal with this crisis and protect human rights, including citizens and residents, and to provide free treatment for all citizens and residents.
The Saudi Minister of Finance indicated that the International Monetary Fund expects the contraction of the economy of 180 countries and the Kingdom is not an exception, but he stressed the strength of the Kingdom’s economy in dealing at an international level and within the G20 system, and in working with international institutions, to confront the effects of the pandemic economically, and to reach a healthy confrontation and through support Kingdom of the World Health Organization efforts, besides donating to affected countries and continuing to provide humanitarian aid.
Great economic packages
A number of Saudi government agencies recently announced a package of measures and initiatives worth more than 70 billion riyals, which is exemptions and postponement of some government dues to provide liquidity to the private sector so that it can be used to manage its economic activities.
This comes in addition to the support program announced by the Saudi Arabian Monetary Agency for banks and financial institutions, and small and medium enterprises in the amount of 50 billion riyals.
The Saudi government also incurred 60% for a period of three months from the wage recorded in social insurance for Saudi workers in private sector facilities with a total value of 9 billion riyals, in addition to the recently announced number of economic measures that were to support and exempt, and expedite the payment of dues to the private sector , With a value exceeding 50 billion riyals.
Government agencies have also implemented these initiatives and measures to mitigate the effects of this global pandemic.