A liquidity crisis is eroding the body of most public institutions due to the aggravation of the budget deficit despite the reopening of activities and the gradual return of life to normal, Al Qabas daily reported.
Sources told the daily that the National Fund stopped loaning money from March 2020 to preserve the initiator and not to risk projects due to the repercussions of the pandemic, until the return of normal life.
The state of the general budget and the deficit it suffers from makes it difficult to ask the General Investment Authority for additional capital to finance new projects.
The same sources expected that the National Fund would reconsider the lending process during the first half of next year, according to a different basis and methodology than the one currently in force, the most important of which is the development of criteria for accepting individual projects and linking their acceptance criteria with the state’s orientation to support economic sectors.
Concerning the loans that were approved before the pandemic, the sources told the daily that work is being done to pay their payments with the General Investment Authority according to the due date of the signed contract.