Saudi makes $10.7 billion of delayed payments to private sector: executive quoted | Reuters

Saudi makes $10.7 billion of delayed payments to private sector: executive quoted | Reuters:
"Saudi Arabia's government has made payments of 40 billion riyals ($10.7 billion) that it owed to private sector companies, the kingdom's Arab News newspaper quoted a senior construction industry executive as saying.

With its oil revenues slashed by low crude prices, the government of the world’s largest oil exporter has cut spending sharply this year and reduced or suspended payments owed to construction firms, medical establishments and even some of the foreign consultants who helped to design its economic reforms.

The payment delays have tightened liquidity in the banking system and caused severe financial problems for some companies, particularly those in the construction industry. In recent weeks, top officials have indicated that all or most of the delayed payments would soon be made."

'via Blog this'