BBA Urges UK Government To Take Action On Two Saudi Firms
Saad Group and AHAB failed to pay billions of dollars of debt to more than 100 domestic as well as international banks
British Bankers’ Association (BBA) is requesting the UK government to take up the issue of international banks’ growing apprehensions about their possible exposure to Saudi Arabia-based Saad Group and Ahmad Hamad Algosaibi and Brothers (AHAB) that have failed to pay billions of dollars of debt with the kingdom’s authorities, reported The Financial times.
International banks raised alarm after it was reported that Saad Group had reached a settlement with Saudi banks, which caused foreign bankers to fear that they could be sidelined. In an attempt to recover their debts, many international banks have initiated legal action against the two Saudi firms.
Reportedly, the two firms are said to owe approximately $20 billion to more than 100 domestic as well as international banks. To make the matters worse, the situation has been exacerbated due to a legal battle between the two copanies, with AHAB alleging Maan al-Sanea of Saad Group, of commiting a fraud to the tune of $10 billion.
According to the newspaper, in a letter signed by Thomas Harris, chairman of trade policy committee, BBA said that it is critical of the kingdom's authorities' tackling of the issue. It urged Lord Davies, minister of trade, investment and business to raise “the increasingly serious problems facing international banks who deal with Saudi Arabia.”
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