Minister of Finance: Kingdom has taken several measures to face Corona pandemic 3 Riyadh

Thursday 1441/8/30 - 2020/04/23
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On fears of domestic product's fall, the Minister of Finance pointed out that the reports of international organizations at the end of 2019 from the International Monetary Fund, saw that 170 countries around the world, including the Kingdom of Saudi Arabia, will witness growth in its economy, drawing attention to the recent reports of those international organizations that were published last week as they see that 180 countries will witness a contraction and a negative decrease in the local product.
He stressed that the Kingdom has two synonymous sides, the first represents a decision to reduce oil output, which will affect the domestic product significantly, and the domestic production will decrease, as a result of the reduction in oil production, similarly, the non-oil domestic product of the private sector is expected to decrease this year.
He indicated that this is not surprising, given the precautionary measures taken by the state to confront the coronavirus pandemic, because the greatest concern for our wise leadership is the protection of citizens, it will always remain at the top of its priorities, promising to continue supporting the private sector, in addition to the intention to study and seriously search for the sectors most affected, to ensure that the necessary support is provided.
Regarding the restructuring of public debt, the Minister of Finance said that the Kingdom has a clear strategy for managing public debt, and there is an independent center for public debt management, which maintains distinguished relations with investors in debt instruments issued by the government, pointing to the announced increase in debt issuance for this year that may reach to an additional 100 billion riyals for the amount of 120 billion riyals, previously announced, bringing the total to 220 billion riyals.
The Minister of Finance touched upon the financial solvency of the Kingdom and its ability to deal with the coronavirus crisis, based on the reforms undertaken by country during previous years, where it managed to control the deficit levels very significantly, while the reserve can cover what we need from the budget deficit, expecting to withdraw 110 to 120 billion riyals of reserves, which was previously planned in the budget.
He pointed out in this regard the increase in borrowing from the domestic market and the external market, indicating that the second issuance of debt instruments in the international market received a great demand in the past several days, which indicates its success, and that the three rating agencies emphasized the credit rating of the Kingdom with a stable future outlook.
The Minister of Finance concluded by saying that the Kingdom has gone through many crises that it has managed to overcome by diversifying the economy.
He added that the journey is still continuing, starting with a journey of financial control to control of the deficit and raising the efficiency of spending and all these factors help the government to face these shocks, but in the end the resources in any country remain limited and the government must work to use these resources to achieve the best possible return and the most possible impact, in particular the direct impact on the availability of citizens needs and the availability of medical supplies and health needs in light of this pandemic.
03:49 LOCAL TIME 00:49 GMT