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Thu 23 Apr 2020 03:50 PM

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Oman tells banks to free loan repayments for three-months

The decision will come into effect in May.

Oman tells banks to free loan repayments for three-months

Oman’s Central Bank has asked that banks and other financial institutions to freeze repayments for personal and housing loans for a three month period amid the Covid-19 pandemic, the state-run Oman News Agency has reported.

The decision will come into effect in May.

No additional commission fees will be required from customers, the ONA report added, noting that banks will be expected to restructure loans if necessary.

Last week, Oman instructed that government entities take further steps to cut funding and has announced a wave of measures to bolster the private sector.

As part of the measures to mitigate the impact of the Covid-19 crisis, the sultanate’s finance ministry has instructed all other government ministries and civilian units to reduce liquidity for development budgets by 10 percent.

Additionally, state companies will no longer be established for business activity in order to give way to the private sector.

Earlier in the week, government agencies were told to slash operating budgets by at least 10 percent to help cushion the blow caused by lower oil prices.

For the private sector, the government mandated that Omani employees cannot be terminated, although they can be put on paid leave or their wages cut if companies have reduced their working hours.

For Omani nationals whose salaries have been lowered, bank and financing loans will be postponed during their salary reduction period. Electricity and water bills will be postponed until June.

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