"The waiver decision is applicable to any loan agreement that was signed before Feb. 23,” acting REDF Director General Hasan Al-Attas said on Sunday.

The decision will result in the writing off of 40 percent of a loan that is to be repaid. If the loan amount is less than 24 installments, the debtor need not pay them at all, Al-Attas said.

The move is in line with the orders of Custodian of the Two Holy Mosques King Abdullah to solve the economic problems of citizens, including their housing needs. The king has allocated SR40 billion to increase the capital of the Real Estate Development Fund. The Saudi Credit Bank announced recently that it would write off two years' installments on all personal loans taken until Feb. 23.

Meanwhile, the Ministry of Social Affairs will start implementing the royal decree that is aimed at increasing the members of families entitled to social security benefits from eight to 15.