MUSCAT: Local banks have been instructed to continue responding to requests to postpone the installments and interest of all borrowers affected due to COVID-19 pandemic crisis until the end of September 2021.

The decision comes after His Majesty Sultan Haitham Bin Tarik approved the economic stimulus package on Tuesday.  “Instructing banks to continue responding to requests to postpone the installments and interest of all borrowers affected by the repercussions of the current situation for another six months until the end of September 2021, without prejudice to their credit rating,” a statement from the Ministry of Economy said. 

The decision also directed the banks to continue the postponement of the repayment of loans taken by Omanis who have been laid off and those whose wages have been reduced until till further notice.

The package also gives incentives related to granting credit. This includes raising the ceiling of the loan ratio, facilitating loans to affected and productive sectors, reducing reserve capital ratios and other measures aimed at helping banks , finance and leasing companies to play their roles in supporting economic  recovery  in the Sultanate  and improving the liquidity ratios in the local market.

Meanwhile, His Excellency Said Al Saqri, Minister of Economy said the economic stimulus plan aims to protect many institutions from defaulting due to the “accidental economic and financial repercussions through banking incentives provided by the Central Bank of Oman.”