30/09/2009
Saudi Arabia's central bank governor said on Monday he welcomed a deal between troubled Saudi conglomerate Saad Group and its creditors.Speaking on the sidelines of a meeting of Arab central bankers in Abu Dhabi, Muhammad al-Jasser said that the issue was one between the conglomerate and its creditors.
"This is an agreement between the creditors and the borrower and my understanding is they have agreed to settle," he said. "They are not ... supervised by the central bank and therefore we are not involved."
Saudi banking sources told Reuters that a government panel had brokered a deal between Saad and local creditors that excludes international banks.
Saad and another firm, Ahmad Hamad Algosaibi & Bros, are embroiled in a legal battle in the United States after defaulting on debts, with some bankers warning the total cost of writedowns may hit $22 billion and affect around 120 banks.
