RENC clarifies on annual plans of banks for liquidating properties

RENC says SAMA’s circular on annual plans for liquidating properties by banks is already followed by them

The Real Estate National Committee (RENC) at the Federation of Saudi Chambers stated that the Saudi Central Bank’s (SAMA) circular requiring banks and financial institutions operating in the Kingdom to provide it with annual plans for liquidating properties that have been acquired in settlement of non-performing debts within 30 days from the end of each calendar year is a mechanism that has previously been in place at banks.

It explained that the recent circular is limited to organizing the reporting mechanism, whereby SAMA is to be provided with the relevant data within 30 days from the middle and the end of each calendar year, covering properties that have come into banks’ ownership in exchange for settling debts, in accordance with the model approved by the central bank.

According to data available with Argaam, SAMA instructed all banks operating in the Kingdom, on Jan. 1, to submit annual plans for liquidating real estate assets acquired through the settlement of non-performing loans, within 30 days after the end of each calendar year.