Saudi Arabia’s central bank has reportedly offered short-term loans to the lenders in the kingdom in a bid to ease the liquidity constraints in the biggest Arab economy.

The Saudi Arabian Monetary Agency or Sama as the central bank is known, offered about SR15bn ($4bn) loans in June, according to news agency Bloomberg, which cited unnamed people familiar with the matter.

The loan facilities, which are for up to one year, were offered at a discounted rates. SAMA offered individual banks as much as SR1.5bn, based on their balance sheets.

An official at the central bank declined to comment to the news agency.

Saudi Arabia, which relies heavily on the sale of oil for revenues, is facing a fiscal deficit after oil slumped from mid-2014 peak of more than $110 per barrel to current close to $50 per barrel level. In order to plug the budget deficit, the kingdom has withdrawn deposits and has been selling riyal bonds to local banks and financial institutions which has dried up liquidity.

SAMA has already taken steps to try to alleviate cash squeeze by allowing banks to lend the equivalent of 90 per cent of their deposits, up from an earlier limit of 85 per cent.