Local banks have begun to implement packages of credit facilities for individuals, businesses, and entrepreneurs. Key measures include deferrals on loan repayments, reduced interest rates, and waived fees—all aimed at enhancing the smooth operation of daily life and boosting businesses’ resilience to market fluctuations and economic conditions, in addition to supporting their recovery and growth.
Experts have noted that these support packages are a positive outcome of the flexible financial policies recently adopted by the banking sector under the oversight of the central bank. These measures have improved banking liquidity in a proactive attempt to maintain a careful balance between financial stability and ongoing economic activity. They anticipate that the scope of facilities offered will expand to include more banking clients as additional banks launch similar or complementary initiatives based on customers’ needs, given the banks’ strong capital position stemming from these progressive policies that do not only directly inject liquidity but also facilitate resource reallocation within banks and minimize restrictions on capital use, thereby enhancing financial resilience.
Financial Requirements
Overall, the diverse packages launched by several major local banks cover a range of needs, extending from direct support for daily transactions and personal finances to shared services for individuals and companies. These encompass financing and electronic payment services, with approximately 15 direct financial facilitation options. These range from deferred payments on loans, including the waiver of postponement fees, to the elimination of return check fees, reduced charges for bank guarantees, lower fees for replacing business-related bank cards, and decreased costs for delivery and shipping services. Additionally, banks are providing banking insurance programs for risks and offering direct discounts on electronic payment service fees. Banks have also abolished ATM withdrawal fees, transfer fees, credit card usage fees, and account opening fees, alongside reducing or waiving numerous administrative fees, while offering preferential interest rates on loans for specific categories.
Successful Experiences
The actions taken by local banks are grounded in liquidity liberalization policies recently approved by the central bank. According to financial sector expert Wadah Al-Taha, the efforts to enhance banking liquidity in the country build on previous successful experiences aimed at achieving several positive outcomes. These include reinforcing financial stability and banking resilience while promoting the flexibility of the local economic environment, maintaining a clear momentum in banking transactions, especially in lending, which is crucial for business operations and economic activity, ultimately preserving the attractiveness of the local environment for wealth holders and large project investors.
The Main Engine
Economic expert Amjad Nasr highlighted that financing drives any economy. With the support packages backed by available liquidity, banks will manage their financial solvency more flexibly. He believes that companies will continue with expansion plans, growth initiatives, and the launch of further market and economic investment opportunities, while the markets avoid any slowdown in regular credit activity. Individuals will also maintain their purchasing power, leading to immediate and direct positive impacts, such as improved investor sentiment, increased stock prices particularly in the banking sector, and heightened investment activity. He pointed out direct outcomes, including safeguarding economic growth momentum and competitive advantages compared to a globally volatile environment, characterized by rising financing costs through early liquidity enhancement policies.
Credit Expansion
Banking sector expert Ahmed Salem anticipates that more banks will expand their support packages, with expectations that they will provide similar or additional facilities that enhance the fluidity of transactions and financing for individuals, institutions, businesses, and companies amidst the recent liquidity liberalization policies. This will strengthen their ability to expand credit.
Key Facilities
1. Deferred repayments on loans
2. Waived fees for loan payment deferrals
3. Elimination of return check fees
4. Reduced fees for bank guarantees
5. Lower fees for replacing business bank cards
6. Reduced delivery service fees
7. Lowered shipping service fees
8. Provision of risk insurance programs
9. Direct discounts on electronic payment service fees
10. Abolition of ATM withdrawal fees
11. Elimination of money transfer fees
12. Waived credit card usage fees
13. Reduced account opening fees
14. Preferential interest rates on loans for specific groups
15. Reduced or canceled many administrative fees