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2.2 Impaired Loans

No: 241000000312 Date(g): 19/1/2004 | Date(h): 27/11/1424 Status: In-Force
As a result, a general provision should be made to cover the impaired loans which will only be identified as such in the future. Unless otherwise prescribed by SAMA, this general provision should be a minimum of 1% of the outstanding balances of the Standard and Special Mention categories. All Saudi government loans or claims fully backed by collateral of Saudi government in form of securities or guarantees should be deducted before calculating general provision.