Oman banks told to continue incentives to boost economy

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Muscat

The Central Bank of Oman on Wednesday issued a statement outlining the incentives stated in the Economic Stimulus Plan (ESP) which was endorsed by His Majesty Sultan Haitham bin Tarik when he chaired a meeting of the Council of Ministers on Tuesday.

The CBO valued the Royal directives on banking incentives which were in full harmony with the government’s efforts pertaining to the ESP.

The CBO pledged its support to all national plans aimed to promote economic recovery amid the current circumstances.

The CBO in a statement issued on Wednesday said that due to the current economic challenges resulting from the pandemic, the apex bank has instructed banks, finance firms and financial leasing companies to continue to grant a 12-month grace period for all existing and future laid-out borrowers, with effect from the date of termination of their services.

The CBO has also instructed banks, finance firms and financial leasing companies to postpone repayment of loans of low-income employees for an additional period of six months till the end of September 2021.

Deferment of loan repayment for the above-mentioned segments has to be done without imposing any type of interest during the grace period.

It has also instructed banks, finance firms and financial leasing companies to continue to postpone premiums and interest payable by the borrowers affected by circumstances posed by Covid-19 for a further six-month period till the end of September 2021, without having to impose interest fee against deferred interest or impacting the credit rating of those loans in any negative way.

The CBO has decided to go ahead with facilitation procedures to provide comfortable levels of cash liquidity in the banking sector.—ONA