The Central Bank of Oman has issued a number of guidelines for all banks and leasing companies (FLCs), including announcing a plan to revive procedures and incentives to contain the economic impact of the Covid-19 pandemic on the lives of individuals. and institutional borrowers.
In view of the current economic scenario and in continuation of previously issued instructions, the Central Bank of Oman has issued new guidelines to banks and finance and leasing companies to extend the grace period for repayment to borrowers, as shown below :
1Licensed Omani citizens – the deferral of deposit / interest / profit is extended until December 31, 2022 or until the borrower concerned obtains another job, whichever comes first, with suspension of interest collection during the period of postponement.
2 Omani employees at reduced salary – The down payments, interest and profits of all the borrowers concerned in this category are postponed to December 31, 2021, with suspension of any interest during the suspension period and authorization to exceed the debt ratio.
3 Public and private sector retirees – Banks will 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 1,500 OMR, and 35 % if the monthly pension is more than 1,500 OMR.
4 Riyadas vscard holders– Banks and Financing and Leasing Companies will continue to postpone the down payments, interest and profits due to them until the end of December 31, 2021. The credit institutions and the borrower must come to an agreement before the end of this period to restore normal repayment or to reschedule the borrowings according to the expected cash flows of the borrowers concerned.
The CBO stresses that it is necessary for borrowers, in particular companies that have previously benefited from these procedures, to take into account the importance of reassessing their financial conditions, before the expiration of the grace period on December 31. 2021. Accordingly, it is advised that entities falling under this category should work with their lenders to plan and reschedule their loan payments.
Central Bank of Oman published this content on 04 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 05 October 2021 05:38:00 PM UTC.