Saudi asks banks to reschedule property loans

Saudi asks banks to reschedule property loans
Economists estimated the cuts might reduce the income of many people by about 20 percent, making it harder for them to service their property and consumer loans
Published: 24 October 2016 - 6:13 a.m.
By: ArabianBusiness.com

Saudi Arabia's central bank said on Tuesday it had asked local banks to reschedule the property loans of citizens whose incomes had been reduced by government austerity measures.

Last month, the government said it would cut allowances for employees in the public sector, where about two-thirds of Saudis work, to save money as low oil prices strain state finances.

Economists estimated the cuts might reduce the income of many people by about 20 percent, making it harder for them to service their property and consumer loans.
At the end of last month, the central bank asked local banks to reschedule consumer loans to help cash-strapped borrowers. It is now doing the same with real estate loans, transferring some of the pain of the austerity drive to banks from consumers.

 


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