Saudi Central Bank Won’t Buy Algosaibi, Saad Debt

Muhammad al-Jasser, Saudi Arabia’s central bank governor, said the bank won’t buy up debts from two family businesses that defaulted after borrowing more than $15 billion.

“Absolutely not,” al-Jasser said when asked whether the Saudi Arabian Monetary Agency would buy up the debt of Ahmad Hamad Algosaibi & Bros. and Maan al-Sanea’s Saad Group from local banks. He spoke to Bloomberg News at a meeting of central bank governors and finance ministers of the Group of 20 countries in London today.

Units of the two groups have borrowed at least $15.7 billion from more than 80 regional and international banks, including Paris- based BNP Paribas SA, New York-based Citigroup Inc. and Arab Bank Plc in Amman, Jordan, according to documents provided by lenders. About $5 billion of that is owed to Saudi banks, Standard Chartered Plc said in an Aug. 26 report.