Asharqia Chamber sheds light on the programs and initiatives of Saudi banks to mitigate the effects of the Corona pandemic
Asharqia Chamber, Wednesday, August 12, 2020, in cooperation with the Banking Information and Awareness Committee in Saudi banks, shed light on the programs and initiatives implemented by Saudi banks to mitigate the effects of the Corona pandemic, through a remote meeting moderated by the Secretary-General of the Media and Banking Awareness Committee and the spokesman for Saudi banks, Mr. Talaat Bin Zaki Hafez, and the Senior Director of Business Banking at Bank Albilad, Mr. Faisal bin Radwan Qalaji, who praised the role of small, medium and micro-enterprises in the national economy and the sustainable development process in which the Kingdom is living, stressed the importance of the capacity and readiness of commercial enterprises in general, small, medium and micro Especially in dealing with health crises, such as the emerging coronavirus pandemic crisis or other global economic crises that the world is going through from time to time, drawing attention to the need to take the necessary precautions for economic crises, and work to develop solutions of all kinds to manage liquidity and cash flows.
Al-Qalaji said that the clarity and transparency of the borrower with the financing party, whether a bank or a finance company, is of utmost importance, as it creates a state of good understanding between the parties to the relationship, and arrives with solutions satisfactory to both parties, stressing the need to benefit from government initiatives in support of the activity as initiatives of the Foundation The Saudi Arabian Monetary Agency "SAMA" and the Finance Guarantee Program for Small and Medium Enterprises "Kafalah", and the General Authority for Small and Medium Enterprises "Monsha'at".
He pointed out that the availability of audited financial statements with the customer greatly helps to deepen the relationship between the customer and the bank, and also enhances the reassurance of the bank that it always needs to see the financial statements to determine its financing options, stressing that the relationship between the bank and the customer is a strategic relationship governed by the principle of partnership and that there are responsibilities and obligations towards the two parties that support the success of the relationship, among which, for example, but not limited to, provides a high level of transparency and disclosure in the relationship.
Al-Qalaji pointed out that the most prominent initiatives to support SAMA for small, medium and micro enterprises in light of the Corona pandemic, the corporation bears fees for electronic banking services and directs banks to postpone the payment of installments due between March 14, 2020, to September 14, 2020, for a period of six months without any costs being taken into account. Or additional fees, and the initiative of the guaranteed financing program in cooperation with the "Kafala" program, which greatly enhanced the facilities' ability to overcome the crisis and gave them the opportunity to continue their work.
Regarding the programs implemented by banks to support establishments, Al-Qalaji said, there is more than one program, such as the salary financing program, which aims to support enterprises by providing credit solutions to finance the wages and salaries of workers, and the financing for points of sale program, which is a program that aims to support establishments by providing facilities Credit against the proceeds of points of sale, as well as the customs clearance and transit program, which supports companies operating in the field of customs clearance by providing a bank guarantee directed to the customs authority, and finally the Hajj and Umrah program, which supports domestic and external Umrah pilgrims campaigns by providing financing solutions in the season Hajj and Umrah.
Al-Qalaji clarified that there are a set of requirements that must be met by the establishments that take them to be well-qualified to obtain credit facilities, such as completing the required supporting documents, having the experience element in the activity to be financed, having a good credit record with "SIMAH" in addition to the good commercial reputation, Good management capacity for the activity, and availability of audited financial statements.
