Saudi liquidity volume remains low despite debt reduction
Although the Saudi government had paid-down nearly 1.7 billion Saudi riyals ($453 million) of its internal debts last month, available liquidity in the country’s local markets still remain low in recent weeks, reports Al-Hayat daily.
Bankers stated that there was no clear explanation for this phenomenon. They added, though, that despite the prevailing liquidity problem, having paid SR 1.7 billion of the government’s debts to local farmers for the year 1999/2000 had a positive impact on customer deposit values in local banks, resulting in an increase of revenues for these institutions. –(MENA Report)
© 2001 Mena Report (www.menareport.com)