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 said the Saudi Central Bank’s (SAMA) requirement for banks to submit annual plans to liquidate properties acquired from non-performing loans is not new. Similar mechanisms have long been applied by banks.

The recent circular mainly organizes reporting procedures, requiring banks to submit relevant data to SAMA within 30 days after mid-year and year-end, using an approved template. The data covers properties acquired in debt settlements.

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.