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Tue 27 Jan 2009 10:07 PM

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Saudis increase financing support

Saudi Arabia's Public Investment Fund is to increase its financing support for projects in the kingdom.

Saudi Arabia's Public Investment Fund announced on Tuesday measures to increase its financing support for projects, amid the global liquidity crunch, state news agency SPA reported.The state-run fund will extend project loan durations to 20 years, including a five-year grace period, from 15 years and will raise a cap on project lending to 40 percent of the value of the project from 30 percent, SPA said.

The measure would raise the fund's maximum project-lending allocation to 5.875 billion riyals, it said without giving a comparative figure.

The measures were taken to address "the global financial conditions, reluctance by global banks to finance some major strategic projects ... and encourage local banks to participate in the financing amid the current financial conditions", it added.

They were approved by a board meeting of the fund which was attended by the finance minister and the central bank governor. (Reuters)

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