Saudi central bank says Aramco IPO not causing liquidity issues for banks

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Saudi central bank says Aramco IPO not causing liquidity issues for banks
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Saudi Arabia's central bank is monitoring banking indicators on a daily bas...

FILE PHOTO: Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov/

Saudi Arabian Monetary Authority governor Ahmed al-Kholifey told Reuters on the sidelines of a conference that he had no concerns about liquidity due to the size of Aramco’s IPO. Aramco plans to sell 1.5% of the company, giving it a potential market value of as much as $1.7 trillion in a deal that is the centrepiece of Crown Prince Mohammed bin Salman’s plans to diversify the oil-dependent economy.

Saudi banks are marketing loans, with some offering four times the usual limits, two financial sources told Reuters earlier this month, adding they were able to do so as they will hold the stock on behalf of clients so have it as security.

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