Declaration by the Shura Council focused in April on the definition of

Home> organizational matters> Saudi Arabia # change weekends - # financing agreements in force Saudi Arabia change # weekends - # financing agreements in force by Craig R. Nethercott, Chirag Sanghrajka and Mahmoud Abdel-Baky in June 25 0.2013 published in regulatory issues, banking and finance operations
Custodian of the Two Holy Mosques, King Abdullah announced on Sunday, June 23, 2013 that the official work in Saudi Arabia mildew days will start from Sunday and ends on the Thursday of each week that the weekend is on Friday and Saturday that this change to take effect as of June 29, 2013 ("Royal Order"). Such a change that makes it compatible to work in Saudi Arabia days with work days in the rest of the Member States mildew of the Gulf Cooperation Council. The Sultanate of Oman had changed the weekend earlier this year. This change mildew would make four working days in Saudi Arabia compatible with other global business centers. mildew The possibility of changing the days Weekend in principle by the Shura Council in the month of April of this year was raised.
Royal Order has received a lot of welcoming but change the weekend raises questions by borrowers and issuers, investors and financial institutions in the Kingdom of Saudi Arabia on the definition of "working day" in the documentation of existing funding.
Declaration by the Shura Council focused in April on the definition of "Business Day", and many of the signed financing agreements after this date moved to use the definition of borrowing Market Association's "Business Day" which is "the day on which banks are open for business in Riyadh of transactions between banks ", following the same other financial centers such as New York or London approach.
But documents entered into before the announcement of the Shura Council are often based definition of "working day" that "today, other than on Thursday or Friday, which the banks are open for business in Riyadh, Saudi Arabia." We will see that the Finance Documents that include this version of the definition of "Business Day" has been reduced working days in which to four days a week and payments due on Thursday may fall now payable on Wednesday (when the Convention on stipulates that the payment of any amount paid by the maturity mildew is located On non-working day for the previous working day) or on Sunday (when the Convention on stipulates that the payment mildew of any amount paid at maturity is day to day work on the subsequent work) is located.
Things must be taken into account "the consequences may be different on the Royal Order of treatment to treatment, however, likely to be signed financing agreements contain before June 23, 2013 at Old for" working day definition. . Parties in the financing agreements mildew may want to study their own documents to understand the impact of the royal command. Royal Decree did not provide for any modification to the definition of "working day" in the agreements, and the parties to financing agreements will need to consider whether to amend the definition of "working day" in their agreements exist to regulate the signal for "working day" for the periods relevant, including commissions and the rate of profit and notice periods and dates of payment.
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