Saudi financial position strong: Minister

Saudi Arabia’s financial position remains strong despite sinking oil prices, although there is “some pressure” on bank liquidity, the finance minister has said.

“We have been able to maintain a good position in public finances,” Ibrahim Al-Assaf told a seminar.

“We have been able to maintain the stability of government reserves as they are still high. The level of debt remains low. The Kingdom’s banks still have strong balance sheets and relatively high levels of capital adequacy and liquidity ratios, despite some pressure on liquidity at the system level in general,” he said.

Assaf said officials “continue to periodically review our policies relating to financial stability”.

Saudi Arabia has taken a series of austerity measures, including subsidy cuts and reductions in government salaries. Earlier this year, it announced a wide-ranging plan to diversify its economy.

Assaf and his Gulf counterparts were meeting in Riyadh on Wednesday with International Monetary Fund chief Christine Lagarde.

On Sunday, Saudi Oil Minister Khaled Al-Falih said the current cycle of falling crude prices is close to an end as market fundamentals improve.