Source: Dubai – Arabic.net
Confirmed Minister of Finance and Minister of Economy and Planning in charge Muhammad bin Abdullah Al-Jadaan said, “The kingdom is facing the current global crisis from a position of strength,” given the strength of its financial position and its huge reserves, with relatively low government debt, evidenced by the positive reports recently issued by credit rating agencies, which confirmed the strength and durability of the economy. Saudi Arabia, and its ability to face the crises that the world is currently experiencing.
This came at the virtual meeting of the members of the International Monetary and Financial Committee, which represents the members of the International Monetary Fund (IMF), which was held Thursday “from a distance”, expected that the global economy will witness the worst recession during the current year 2020 AD, and that “it will be much worse than it was during the global financial crisis”, indicating that the human impact of the emerging Corona virus (Covid-19) pandemic is significant, according to What was quoted by “agency”.
Al-Jadaan extended the sincere condolences and sympathy of the Kingdom of Saudi Arabia to all those affected by the virus (Covid-19), indicating that the priorities of the Saudi government aim to implement precautionary measures to protect the health of citizens and residents, and provide the necessary resources for health care systems, while providing financial and economic support to the groups most affected The repercussions of facing this pandemic, and taking into account the re-prioritization of spending under the current circumstances.
He pointed to the need to follow financial and monetary measures that contribute to creating the appropriate conditions for a rapid economic recovery, with the importance of being targeted and time-bound, and characterized by transparency to contain financial risks and vulnerabilities to debt sustainability.
He pointed out that the Kingdom’s presidency of the G20 is working to promote strong multilateral cooperation to eliminate the pandemic, and that the countries of the twenty have pumped more than five trillion dollars into the global economy, as part of fiscal policy, economic measures and guarantee plans targeted to counter the social, economic and financial impacts of the pandemic .
He indicated that it is working closely with all member states and relevant international organizations to provide appropriate international financial assistance quickly, and urged countries to make more efforts to enhance debt sustainability, noting that the Group of Twenty launched the initiative to suspend the debt payments of the poorest countries for a limited period, With the support of the International Monetary Fund, the World Bank, and the Paris Club.
With regard to the measures taken by the Saudi government to confront the emerging corona virus and mitigate the effects and repercussions of this confrontation on individuals and facilities, the Minister of Finance clarified that the Kingdom has taken urgent measures to address the risks of the virus and reduce its effects, locally and through its land, sea and air outlets, which included many financial, monetary and economic initiatives , Where more than 120 billion riyals was allocated for its implementation, which is equivalent to about 4% of Saudi GDP, in addition to nine billion riyals to protect the Saudis working in the private sector from losing their jobs and providing alternative income for those who lose income m The government also allocated 50 billion riyals yesterday to accelerate the payment of the dues of the private sector, and announced the deduction of 30% of electricity bills for the commercial, industrial and agricultural sectors, while supporting individuals working in passenger transport activities by paying an amount of the minimum amount of salaries to them.
He stressed that these initiatives will help to maintain the stability of the national economy and enhance confidence in its strength, pointing out that the Kingdom’s government is closely monitoring the overall situation, and it is ready to provide more support if necessary.
The capacity of Saudi banks is high
He added that the Saudi Arabian Monetary Agency likewise announced a number of measures to support individuals and medium and small enterprises, and to maintain financial stability, stressing the ability of Saudi banks to cope with the current crisis in view of their strong capital and ample liquidity.
He expressed the Kingdom’s support for all the global efforts made to confront this pandemic, through its financial contributions to relevant international institutions such as the World Health Organization, praising the agenda of the Director General of the International Monetary Fund on global policies, and its crucial role in providing reliable and timely information on economic and financial developments Globalism.
He stressed that the Kingdom encourages the fund to continue its participation and support for the Middle East and North Africa, including fragile and conflict-affected countries, pointing out that the fund is well positioned to support its members during this crisis, with its ability to support lending by the amount of one trillion dollars.
The Minister of Finance urged the International Monetary Fund to continue to have flexibility in responding to the needs of members given the growing uncertainty in the response to the pandemic, in addition to strengthening its cooperation with the World Health Organization and all relevant international organizations to ensure a well-coordinated phase-out of existing containment measures, which transforms Without the recovery of the global economy, pointing out that further strengthening the Fund’s coordination with relevant international and regional institutions is important.