MUSCAT: Oman’s Ministry of Finance (MOF) has issued a circular to state-owned Enterprises (SOEs) and government agencies to obtain prior approval before raising funds using any financing instruments, locally or internationally.

In a circular issued by Sultan Al Habsi, Minister of Finance, said that the decision was taken after some institutions entered into a financing agreement with local and international bodies without prior coordination with the Ministry of Finance.

The Financial Circular stated: “Public institutions and SOEs are required to provide the Public Debt Management Department at the Ministry of Finance with the annual financing plan no later than 31 January of each year, in addition to coordinating with the debt department before appointing funding bodies or coordinating with issue managers, and obtaining prior approval from the department on loan projects before and after completion of the negotiation, and to submit details and terms of bond and Sukuk issuances.”

“It is also necessary to coordinate with the department regarding the proposed loan contracts in all its forms before and after the completion of the negotiation procedures with local or foreign financing agencies. It also requires details and conditions for the issuance of bonds or sukuk before their issuance,” the circular added.