RIYADH: The Royal Decrees announced last Wednesday are aimed at supporting the needy and poorer segments of Saudi society, particularly those decisions related to the Real Estate Fund and the Credit Bank, said Dr. Ibrahim Al-Assaf, Minister of Finance, on Saudi television Saturday. He said the loans provided by these institutions will allow citizens to start their own businesses and earn an honorable living. The decrees will also ensure financial support for unemployed jobseekers. The capital of the Real Estate Fund and Credit Bank has been increased by more than 40 percent, he added. He said the Real Estate Fund has already provided 600,000 loans since its inception. The leadership is concerned about housing and has therefore added SR40 billion to the fund's capital. This ensures there will be more beneficiaries. The decree also exempts beneficiaries from two installments annually, as well as subscribers who have passed away. Al-Assaf said the SR40 billion added to the fund's capital covers 133,000 loans yearly. He added that the fund has launched two important initiatives under which it has made the necessary arrangements for providing loans worth SR300,000 for buying flats. He said the second initiative, which will be implemented soon, is a program for guaranteeing loans given out by specialist financial institutions. Citizens will be able to seek loans from banks under the guarantee of the fund. One of the advantages of this program is that it lightens the burden on citizens in terms of debt servicing. A bank reduces its loan repayment rates automatically if it has a credible guarantor. He said the royal decree covers all debt defaulters in prisons. However, there is a condition governing the payment process to discourage defaulting. Al-Assaf said that Prince Naif Bin Abdul Aziz, Second Deputy Prime Minister and Interior Minister is supervising the implementation of this decree. About the royal decree which stipulates payment of financial aid or salaries to the unemployed and job seekers, he said the General Statistics Department has precise statistics on who would qualify. This money will be paid from the reserve of the Human Resources Fund. The cost of the royal decrees – estimated at SR110 billion - will be paid from the state's budget. Revenue from higher oil prices will help to cover a significant portion of this aid. “We may need to withdraw from the state's reserve to cover these amounts. The most important thing is that we should keep a reasonable reserve for the state to ensure financial stability and strengthening of confidence in the national economy. This is very important for the Kingdom's [international] credit rating.” He said the private sector also has to employ jobseekers. Businessmen should show they are serious in this regard, he said.
