Saudi Arabia Converts $300 Million Deposit in Mauritania into Soft Loan

Saudi Arabia announced on Sunday the conversion of its deposit with the Central Bank of Mauritania, amounting to $300 million, into a soft loan, as part of its unremitting efforts and its role in supporting Arab and Islamic countries.

The Saudi News Agency (SPA) stated that this step comes as confirmation from the Kingdom of its permanent support for the government and people of Mauritania to push the wheel of economic growth and implement development projects in various vital sectors, in addition to opening new financing channels from regional and international financial organizations.

The Mauritanian Ministry of Finance Islam Ould Mohamed Ambadi stated that Saudi Arabia had placed in 2015 in the Central Bank of Mauritania in support of the national currency and the balance of payments, which helped Mauritania avoid the negative repercussions of the deterioration in the prices of extractive materials, which constitute the country's most important exports.

He said that this loan will be repaid within 20 years, including a grace period of 8 years, at an interest rate of 1%. He added that the Kingdom of Saudi Arabia generously and effectively accompanied Mauritania's development process over the past decades, and contributed to advancing the development wheel by financing many vital projects in basic infrastructure and public utilities in many sectors such as water, energy, education, health and roads, as well as in supporting his country's foreign exchange reserves.