The Ministry of Finance, represented by the National Debt Management Center (NDMC), signed agreements with Samba Financial Group , National Commercial Bank (NCB), and Saudi British Bank (SABB) to fund the ministry's supply chain.
These agreements come within the framework of enabling financial institutions to support the private sector growth, the chairman of the ministry's steering committee, Abdulaziz Al Fraih, said in a statement.
He added that the private sector is one of the pillars in the financial sector development program, with the aim to become a diversified and effective sector in supporting the development of the national economy.
The global economy has witnessed several changes in light of COVID-19 pandemic, as many supply chains have been reconsidered.
Moreover, effective and safe supply chains have successfully been created during this exceptional period instead of importing them from abroad, the minister said.
Al Fraih pointed out the importance of developing the sector through continuous work, aiming to achieve the required fluidity for its vital role in developing industrial, commercial, and service sectors.
NDMC’s CEO Fahad Al-Saif said the agreements aim to improve the level of cash flows and liquidity in the financial sector, noting that they will be implemented in two phases.
After the NDMC agreed with banks on financial facilities, the Ministry of Finance will pay the dues of government agencies' clients in the first phase, according to innovative payment transactions under the supply chain program.
It will be followed by the second phase, which is more comprehensive and includes the development of an integrated program between the ministry and the banks to automate all mechanisms and the possible products to finance the supply chain, Al-Saif said
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