The Saudi Arabian Monetary Authority (SAMA) announces the issuance of rules and conduct for loan management with potential default granted to legal entities. This aims at promoting fair treatment with clients and providing appropriate solutions to them. SAMA directed banks operating in the Kingdom to monitor loans showing signs of potential defaulting and organize restructuring procedures for these loans.

These rules comes in line with the local efforts made for the enabling of the private sector, which includes granting credit to small and medium enterprises to raise their contribution to economic development.

SAMA clarified in its statement that these rules and conduct of potential default loan management came in line with international best practices in this aspect, and came up with instructions that contribute to developing procedures for the handling of loans by legal entities showing indications of possible delinquency proactively. Moreover, this should aid these entities comply with their financial obligation schedule and avoid reaching the default stage through fair treatment and appropriate solutions according to the nature of each facility. Accordingly, this should support their economic activities.

Note: the summary of rules and guide to managing loans with potential defaulting which can be viewed through the link .Also, the rule and guide to managing loans could be viewed via the link.