Saudi Arabia Says Virus Steps to Save Companies $32 Billion

(Bloomberg) --

Saudi Arabia said a series of measures it’s taking would enable companies to redirect 120 billion riyals ($32 billion) as they struggle to combat the impact of the coronavirus pandemic.

The Finance Ministry said Friday it would exempt the private sector from some government fees and delay other payments, for now saving firms 70 billion riyals. The steps also allow businesses to delay value-added tax payments for three months. The kingdom’s central bank had already unveiled a 50 billion riyal package to support business, including 30 billion riyals for banks and financing companies that are deferring loans for small and medium-size enterprises.

The government “has the ability to diversify its sources of financing between public debt and reserves, enabling it to face the current challenges,” the ministry said in a statement. It would switch spending to sectors that are most effected by the virus and boost money for health services.

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.