Bank liabilities (claims) on the public sector registered a monthly growth rate of 5.1 percent (SR4.8 billion) to reach SR97.9 billion by the end of August (2014), according to a financial report.

The highest level of liabilities was registered in June at SR99.4 billion compared to SR98.3 billion in April of the current year, the report published by Al-Eqtisadiah daily, said.

The growth of bank liabilities on the public sector was primarily attributed to the growth of government bonds, both at monthly or annual levels, and bank credits on government companies in the form of loans, advances and overdrafts, the report said.

Meanwhile, the average growth of liabilities in the first eight months of the current year exceeded 11 percent compared to figures of the same period last year. Liabilities of the current year averaged at SR96.82 billion compared to SR86.8 billion in the same period of 2013, the report said.

On the other hand, government bonds represented 55.6 percent of the total liabilities claimed by banks while the remaining 44.4 percent formed bank credits provided to government -run corporations, the report said.

Government bonds registered a monthly growth rate of 10.4 percent, or SR5.14 billion, to reach SR54.4 billion by the end of August, which was considered the highest since 29 months, namely since March 2012 which registered SR54.2 billion. Year-on-year basis, the government bonds registered a growth of 41 percent (nearly SR16 billion), which was SR 38.6 billion by the end of August 2013, it said.

In the meantime, bank credits to public corporations registered a monthly drop of one percent (SR387 million) to reach SR43.4 billion by the end of August (2014). The highest level of bank credits was registered in June (2014) at SR46.6 billion, the report said.