The Supreme Economic Council (SEC) held a meeting, Thursday, chaired by King Abdullah, Custodian of the Two Holy Mosques and Chairman of the SEC, which issued directives to deal with any fallout from the global economic crisis and limit its potential effects on the national economy. As part of the action plan the government agencies must monitor the crisis continuously and take measures to curb its effects on the national economy and prosperity and livelihood of the citizens. The King issued directives to the Advisory Board for Economic Affairs at the SEC stating that it should monitor the global financial crisis continuously, study its effects, lay down specific proposals and present periodic reports on how to react to the problem. The council approved four measures; 1) Saudi Arabian Monetary Agency (SAMA) should monitor the Saudi banks continuously, ensure their safety and provision of the necessary liquidity when needed. 2) SAMA should follow the restrictions laid down on providing liquidity to banks by further reduction of the reserve requirement and reduce the cost of financing if necessary. 3) The government will continue to guarantee the safety of local banks and bank deposits. 4) To call upon the ministers of finance and governors of central banks in the GCC countries to coordinate positions. The meeting was held in the presence of Prince Mit'eb Bin Abdul Aziz, Prince Naif Bin Abdul Aziz, Prince Saud Al-Faisal, SEC member ministers and the Advisory Board for Economic Affairs. The King confirmed that the Saudi economy is passing through a stage of prosperity and the rate of growth is increasing across a wide range of economic sectors. Despite the global nature of the crisis, its effects on the Saudi economy will be limited because of the economic advancements the Kingdom is undergoing as well as the secure financial standing of local banks, the King reassured.
