1996 News Story

Lending procedures facilitated for farmers

Minister of Finance and National Economy Dr. Ibrahim Al-Assaf today announced that in accordance with directives from the Custodian of the Two Holy Mosques King Fahd Bin Abdul Aziz and Crown Prince Abdullah Bin Abdul Aziz, it has been decided that farmers will be able to use promissory notes as guarantees for short and medium term loans provided by the Saudi Arabian Agricultural Bank.  The short-term loans are repayable within one year, the medium-term loans in ten years with a one-year grace period.  This decision was made to facilitate lending procedures for farmers, and the necessary measures have been taken to regulate the relations between the farmers and the bank which will treat the promissory notes like any other assets being provided as guarantees for loans.