King Salman bin Abdulaziz Al Saud
Saudi banks told not to deduct amount from new allowance
RIYADH, January 8, 2018
Saudi Arabia's King Salman bin Abdulaziz Al Saud has issued directives to the Saudi Arabian Monetary Authority (Sama) to ensure that banks do not take advantage of the recent increase in living allowances and bonuses to deduct other loans or fees.
King Salman had earlier ordered an increase in the salaries and allowances of the kingdom's public sector employees and military personnel to help offset the introduction of value-added tax (VAT) and a rise in fuel prices this year.
According to the Saudi Press Agency (SPA) the directives entail that banks shall not deduct any amounts or fees from the said allowances and bonuses for the repayment of personal loans and other financing obligations.
