SAMA hikes mortgage loan limit to 85 percent

Banks will now be permitted to lend buyers 85 percent of the value of a home, up from 70 percent. It will apply to purchases of first homes by Saudi citizens.
Updated 06 January 2017
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SAMA hikes mortgage loan limit to 85 percent

DUBAI: The Saudi Arabian Monetary Authority (SAMA) said it would allow banks to supply a bigger share of funding for purchases of homes, as part of authorities’ drive to stimulate the real estate market and ease a shortage of affordable housing.
Banks will now be permitted to lend buyers 85 percent of the value of a home, up from 70 percent previously. That will apply to purchases of first homes by Saudi citizens.
The change will allow banks to offer a wider variety of products in the market without compromising the financial stability of the banks, the authority said.
Last March, SAMA raised the loan-to-value ratio to 85 percent from 70 percent for specialized mortgage companies but did not do so for banks. At the time, it said mortgage firms were more able to bear increased risk associated with the change because unlike commercial banks, depositors’ money was not at risk.


White House to host meeting with tech executives on Huawei ban

Details of an easing of the Huawei ban have not yet been released. (Reuters)
Updated 5 sec ago
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White House to host meeting with tech executives on Huawei ban

  • Intel and Qualcomm declined to comment. Google, Micron, Microsoft and Broadcom did not immediately respond to requests for comment

WASHINGTON: White House economic adviser Larry Kudlow will host a meeting with semiconductor and software executives on Monday to discuss the US ban on sales to China’s Huawei Technologies, two sources briefed on the meeting said.
Treasury Secretary Steven Mnuchin will also attend the White House event, to which chipmakers Inteland Qualcomm have been invited, the people said.
A White House official confirmed the meeting would take place, noting that Google and Micron would attend, but said it had been called to discuss economic matters.
The subject of Huawei was expected “to come up but that it is not the reason why they are convening the meeting,” said the official, who spoke on condition of anonymity.
The future of US companies’ ties to Huawei, the world’s no. 1 maker of telecommunications equipment, remains uncertain after the Trump administration put the company on a blacklist in May, citing national security concerns.

HIGHLIGHTS

• Huawei is the world's number one maker of telecommunications equipment.

• US Treasury Secretary Steven Mnuchin will attend the White House event, to which chipmakers Intel and Qualcomm have been invited, the people said.

The move banned US companies from selling most US parts and components to it without special licenses. However President Donald Trump said last month American firms could resume sales, with an eye on reviving trade talks with Beijing. Several weeks after the announcement, details about what the new policy toward the company is are still not forthcoming.
Commerce Department Secretary Wilbur Ross has said licenses would be issued where there is no threat to national security. Reuters reported that the United States may approve licenses for companies to restart new sales in a matter of weeks.
One of the people briefed on Monday’s meeting said Broadcom was also invited to the White House event. Microsoft was also expected to receive an invitation, the person said.
Intel and Qualcomm declined to comment. Google, Micron, Microsoft and Broadcom did not immediately respond to requests for comment.