Saudi Arabia’s Monetary Agency (SAMA) reportedly offered individual banks short-term loans worth SAR15bn (USD4bn) at a discounted rate in late June, according to data shown on the consolidated balance sheet of banks. The loans are for up to one year, aiming to help ease liquidity constraints in banking sector as the government continues to withdraw deposits and sell SAR debt to fund the budget deficit. Previously, SAMA allowed banks to lend the equivalent of 90% of their deposits, up from an earlier limit of 85%. Meanwhile, the three-month Saudi Interbank Offered Rate has surged 69 bps this year (and 9 bps since May-end) to 2.24%, approaching 2009 highs. (Bloomberg)