The Central Bank of Oman (CBO) has issued a number of directives to all banks and finance leasing companies (FLCs) to extend the grace period for repayment to borrowers considering the current economic scenario.

CBO has also announced a stimulus package of procedures and incentives aimed at containing the economic impact of pandemic, reported Oman News Agency (ONA).

The directives are as follows:
 
1. Omani citizens laid off from work – the deferment of instalment/interest/profit is to be extended until December 31, 2022 or until the borrower concerned obtains another job, whichever is earlier, with the suspension of charging any interests during the deferment period.  

2. Omani employees with reduced wages – The instalments, interests, and profits of all affected borrowers of this category are to be postponed until December 31, 2021, with the suspension of charging any interests during the deferment period and along with permission to exceed the debt burden ratio.  

3. Pensioners from the public and private sector – Banks shall continue to modify the terms of repayment of existing personal loans/finance, so that the maximum debt service ratio does not exceed 30% of the monthly pension if it is equal to or less than RO1,500 ($3,884), and 35% if the monthly pension is more than R01,500.

4. Riyada card holders– Banks and Finance & Leasing Companies shall continue to postpone the instalments, interests and profits due from them until the end of December 31, 2021. The lending institutions and the borrower should mutually work out before the end of this period to restore the normal repayment schedule or to reschedule the loans according to the expected cash flows of the borrowers concerned.

CBO has emphasised that, it is necessary for the borrowers, especially the companies which previously benefited from these procedures, to take into account the importance of reassessment of their financial conditions, before the expiry of the grace period on December 31, 2021. Accordingly, it is advised that the entities falling under this category shall work with their lenders to plan and reschedule their loan payments.