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Saudi extends billion-riyal credit to low-income citizens

Saudi Arabia orders Dh9.8 billion bank deposit in to facilitate lending to low-income citizens as world leaders struggle to find ways to battle global financial crisis.

  • Agencies
  • Published: 09:26 October 26, 2008
  • Gulf News

  • The worst financial crisis in 80 years has forced countries to work together to find ways to help shore up a financial system crippled by banks fearful of lending to each other.
  • Image Credit: Gulf News Archive

Riyadh: Saudi Arabia's king has ordered that 10 billion riyals (Dh9.8 billion) be deposited in the Saudi Credit Bank (SCB) to facilitate lending to low-income citizens amid a global financial crisis, the official SPA news agency reported on Sunday.

The SCB was established to extend interest free loans to Saudi citizens with limited financial resources to help them overcome their financial difficulties.

The Saudi move came a day after Asian and European leaders closed ranks to try to bolster confidence among investors who fear that a global credit crunch has ushered in a deep and damaging worldwide recession.

The worst financial crisis in 80 years has forced countries to work together to find ways to help shore up a financial system crippled by banks fearful of lending to each other.

"We need to enhance cooperation between all countries, because only with cooperation can we create the strength to overcome hardships," Chinese Premier Wen Jiabao said at the end of a two-day summit of 43 Asian and European leaders in Beijing on Saturday.

Governments have pledged around $4 trillion to support banks and restart money markets to try to stem the crisis and have looked into introducing tougher financial rules to guard against any repeat.

The UAE has pledged Dh70 billion to ease the strain on the financial system caused by the global economic crisis.

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