Saudi businessmen's defaulting debts to local banks are estimated at SR150 billion Saudi ($40 billion), Saudi-based Al-Riyadh daily reported on Saturday citing economists who blamed flawed lending procedures and the kingdom's central bank for the problem.
The banks' lending to these businessmen was based on the businessmen's "reputation" and this is a point of weakness, economist Khalid Al-Humaidan told the paper.
About 70 percent of the banks' employees dealing with lending operations are foreign expatriates whose first concern is to achieve the highest volume of lending regardless of the creditworthiness of the loan seekers, Humaidan added.
© The Saudi Gazette 2009
The banks' lending to these businessmen was based on the businessmen's "reputation" and this is a point of weakness, economist Khalid Al-Humaidan told the paper.
About 70 percent of the banks' employees dealing with lending operations are foreign expatriates whose first concern is to achieve the highest volume of lending regardless of the creditworthiness of the loan seekers, Humaidan added.
© The Saudi Gazette 2009
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- Highr0ller
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Come and see what is happening on the streets of Riiyadh. Gone are the days when this place used to be the center of tranquility. Pirates are roaming on the streets on Riyadh, Jeddah and other cities to snatch mobiles, purses, money, documents and any thing they can put there hands on. Police are silent observers. Who are to be blamed, expatriates. Saudi banks are almost 95% Saudized but when there are bad loans, whom are to be blamed: expatriates. Well it is so easy to point fingures at others forgetting that the other four fingers are pointing towards yourself.
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- Highr0ller
- 4 months ago
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