SABB defers personal loan payments by a month

The Saudi British Bank (SABB) has deferred by a month personal loan payments for government employees affected by the recent salary cuts and bonuses freeze, the lender said in a statement.

Clients will be able to reschedule their repayments in accordance with the new salary structure after the end of the month of Muharram, or the period from Oct. 3 to Nov. 1, it added.

Last month, Saudi Arabia cut ministers’ salaries by 20 percent and bonus payments for state employees in efforts to stem the budget deficit.

The cabinet has recently adopted the Gregorian calendar instead of the lunar calendar to calculate monthly bonuses. The lunar calendar is about 11 days shorter than the Gregorian calendar.

SABB, like other lenders in the kingdom, has been required by law to defer the loan payments for public sector employees affected by the government’s latest set of austerity measures.