The Saudi Central Bank (SAMA) announced the extension of the Deferred Payment Program for three additional months for the benefit of micro, small and medium enterprises (MSMEs) that continue to be affected by the COVID-19 precautionary measures.
The Program is one of SAMA's Private Sector Financing Support Programs. It will be implemented based on the assessment of the financing entities.
Since its launch in March 2020, the Deferred Payment Program has benefited more than 107,000 contracts with a total value of SAR181 billion in deferred payments.
Since the beginning of the pandemic, SAMA announced a program amounting to about SAR50 billion to support the private sector and enable it to play its role in promoting economic growth.
The Program provides a package of measures based on the sector's role in activating monetary policy tools and enhancing financial stability.
Meanwhile, SAMA also announced it would conduct repo, reverse repo, and Open Market Operations (OMO) with locally operating banks using Bloomberg's Auction System from January 2022.
In 2018, SAMA completed the development of the SAMA Bills and Murabaha issuance system using Bloomberg.
SAMA Vice Governor Ayman Mohammed Alsayari said that the collaboration with Bloomberg marks the next stage in developing the central bank's operations.
"The increased efficiency of liquidity management operations will have a positive impact on the banking sector. It also aligns with international best practice in liquidity management through electronic trading."
Global Head of Electronic Trading Solutions at Bloomberg, Nicholas Bean, indicated that Bloomberg's Auction System is part of a range of Bloomberg solutions designed to help bring greater transparency, liquidity, and efficiency to capital markets.
"We are delighted by this ongoing collaboration with SAMA to further support the electronification of its markets."
Bloomberg's Auction System, a part of Bloomberg's enterprise solution for central banks and government financial agencies, is used to perform auction tenders electronically and by market participants to track these auctions and enter bids.
The system provides a safe and secure environment to issue debt, buy back debt, and perform other open market operations, including repo and reverse repo auctions, all from a single integrated solution.
It is fully integrated with the data, news, analytics, and communications tools available on the Bloomberg Terminal. Bloomberg's Auction System is used in more than 30 countries globally.
