Supreme Economic Council Holds Meeting

Riyadh, October 16, SPA -- In line with the directives of the
Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al
Saud, the Chairman of the Supreme Economic Council, the Council held
a meeting under his chairmanship here today.

The meeting was attended by Prince Mit'eb bin Abdulaziz; Prince Naif
bin Abdulaziz; Prince Saud Al-Faisal; member ministers of the
Council; and members of Advisory Commission for Economic Affairs.
Dr. Abdulrahman Al-Tuwaijri, the Acting Secretary General of the
Supreme Economic Council, stated that the meeting discussed the
current global financial crisis that has spread to cover various
countries in the world, to affect the status of credit, liquidity and
safety of banks in these countries, and to cause heavy losses for all
the world's financial markets, prompting most countries of the world,
particularly the major industrialized countries, to take action to
address this crisis, to approve action plans and to coordinate among
themselves.
The Council also discussed the potential impacts of the crisis
on the Saudi economy, he said.
Al-Tuwaijri said the Custodian of the Two Holy Mosques affirmed
added that the Saudi economy is currently enjoying prosperity due to
high rates of growth and investment in various sectors of the economy
and to the continual process of the development.
Despite the universality of the crisis, its impact on the Saudi
economy will be limited because of local economic progress witnessed
by the Kingdom and the safety of the financial position of local
banks, the King was quoted as telling the council.




To deal with this crisis and curb its possible impacts on the
national economy, the Custodian of the Two Holy Mosques King Abdullah
bin Abdulaziz Al Saud has instructed, in his capacity as Chairman of
the Supreme Economic Council (SEC), the concerned authorities to
continue monitoring the crisis and to take whatever procedures that
curb its repercussions on the national economy and the people's
welfare and living, Al-Tuwaijri said.

He added that the King also instructed that the Advisory Commission
for Economic Affairs, an affiliate of the council, is to monitor the
crisis on continuous basis, study its impacts, forge specific
proposals to contain it and submit periodical reports on that matter.

Al-Tuwaijri said the SEC ratified the following measures:
First: Saudi Arabian Monetary Agency (SAMA) manages to continuously
monitor the performance of Saudi banks and continue to show keenness
on their safety by providing the needed flow of money if deemed
necessary.
Second: SAMA modifies the restrictions imposed on the provision of
liquidity to banks by allowing more reductions in the rate of
reserves and reduction of finance costs if necessary.
Third: The government continues to guarantee the safety of local
banks and bank deposits.
Fourth: Ministers of Finance and Governors of Central banks in the
GCC member states will be invited to coordinate their positions.
--SPA