Small Enterprise Bank raises the share of financing to 20%

The Small and Medium Enterprises Authority plans to raise the share of financing for companies operating under its umbrella to 20% compared to 8% during the past year, with the start of the Small and Medium Enterprises Bank actually operating during the current year, and according to the Authority, the financing of small and medium enterprises jumped from 108 billion riyals in 2018 to 117 billion riyals in 2019, then 176 billion riyals last year, while the target for financing was only 5% during the past year, and the banking sector provided 92.08% of facilities for small, medium and micro enterprises, while the share of finance companies from the facilities granted was 7.92%, And the Central Bank had indicated in March of last year, with the start of the Corona crisis, to support micro, small and medium enterprises, with a value of up to 43.3 billion riyals. As part of its plan to support the private sector to limit the effects of the Coronavirus, which included depositing about 30 billion riyals for the benefit of financing agencies and banks; In return for postponing the payment of the obligations of micro, small and medium enterprises for a period of 6 months, as this came with the aim of mitigating the potential impact of the decline in cash flows that may be faced by small, micro and medium enterprises.

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