MUSCAT: The Central Bank of Oman has announced a number of stimulus packages aimed at alleviating the impact of the Covid-19 pandemic.
"In view of the current economic scenario and in continuation of previously issued instructions", the Central Bank of Oman has issued further directives, to banks and Finance & Leasing Companies, "to extend the grace period for repayment to borrowers in certain categories".
In its directives to banks and financial leasing companies, the apex bank said, “the procedures and incentives are aimed at containing the economic impact of the Covid-19 pandemic on the lives of individuals and institutional borrowers”.
Accordingly, Omani citizens laid off from work will be eligible for deferment of installment 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”.
The second category will be Omani employees with reduced wages. Affected borrowers in this category will get a deferment of installments, interests, and profits during this period.
“They will get the benefit of suspension of charging any interest during the deferment period and along with permission to exceed the debt burden ratio”, the bank said in the announcement.
Pensioners from the public and private sectors are the other category.
“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 per cent of the monthly pension if it is equal to or less than RO 1500, and 35 per cent if the monthly pension is more than RO 1500”, the Central Bank said.
The last category mentioned in the announcement is Riyada cardholders.
According to the directive, banks and Finance & Leasing Companies shall continue to postpone the installments, 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.
“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”, the apex bank stressed in the directive.
Accordingly, it is advised that the entities falling under this category shall work with their lenders to plan and reschedule their loan payments.
In other news, The Central Bank of Oman (CBO) has announced the allocation of fee income received over 5 months, which is estimated at about RO7 million, to beneficiaries affected by cyclone Shaheen.
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