The Sultanate of Oman agrees to a loan of 2.2 billion dollars


  Oman expects a budget deficit in 2021 of 5.82 billion dollars (AFP)</p><div><p>Sources told "Reuters" today, Wednesday, that <a target="_blank" href="" rel="noopener">Sultanate of Oman</a> Collected<a target="_blank" href="" rel="noopener"> A loan</a>Valued at $ 2.2 billion, in a deal that attracted the interest of a wide range of <a target="_blank" href="" rel="noopener">Banks</a> Regional and global.

Sources told the agency in January that Oman was working with a group of banks to collect a $ 1.1 billion loan, which could reach $ 2 billion, depending on market appetite.

The sources said the deal ultimately closed at $ 2.2 billion last week. Oman’s Finance Ministry did not immediately respond to a request for comment.

Oman expects a budget deficit in 2021 of 2.24 billion Omani riyals ($ 5.82 billion). To compensate for the shortfall, the government aims to raise about 1.6 billion riyals by borrowing and withdrawing 600 million riyals from its reserves.

The Sultanate’s government was the first in the Gulf to touch the global bond markets this year, to collect $ 3.25 billion of bonds in three tranches in January, taking advantage of the positive market conditions to re-supply the country’s coffers affected by the Corona virus crisis.

The sources said that the maturity of the new loan will fall within 15 months, with the possibility of extending the term for an additional 12 months, at the discretion of the borrower.

One of the sources said that the loan attracted the interest of more than ten global and regional banks, who offered about three billion dollars for the deal.

Standard & Poor’s Global said that the external debt owed by Oman in the current and next two years amounts to $ 10.7 billion, or the equivalent of about 7.5% of the GDP.

During the past year, the economy of the Sultanate of Oman was affected by the outbreak of the Coronavirus and the drop in oil prices, which left profound effects on the business results of companies operating in the local market.

Moody’s Investors Service said last month that Saudi Arabia and Oman are more vulnerable to a decline in sovereign assets in the medium term, due to the repercussions of the Corona pandemic and the increasing withdrawal to compensate for lower oil prices.

In recent weeks, the Omani government has intensified a long-term policy, known as Omanisation, to create job opportunities for its citizens to help support an economy weakened by low oil prices and the Coronavirus crisis.

(Reuters, Al-Araby Al-Jadeed)


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