Saudi Arabia will use state investment funds to extend credit to companies in an effort to make up for banks’ reluctance to lend and stimulate an economy hit by the collapse in oil prices.
According to Ibrahim al-Assaf, finance minister, the Public Investment Fund (PIF), a huge state investment vehicle that controls shares in some of the leading companies, is stepping up its level of lending, extending the maturing of loans available to companies and providing them with a five-year grace period.
While the PIF can lend only to companies in which it owns shares, the Industrial Development Fund and a government-owned credit savings bank are increasing their funding for small and medium-sized companies.
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