All Licensed Banks / Non-Bank Financial Institutions Money Exchange Establishments Operating in the Sultanate of Oman

After Compliments,

Re: Payment of Interest on Capital Deposits

1. Further to our Circular BM 1013 dated January 9, 2007 and in pursuance of Article 61(g) of Oman Sultani Decree No. 114/2000, the Central Bank of Oman has reviewed the matter and decided after considering the prevailing interest rates within the Sultanate that the rate of interest payable on Capital deposits shall stand reduced to 2.0% per annum from 2.5% p.a hitherto paid. The above revision takes effect from January 1, 2008.

2. All Licensed Banks, Non-Bank Financial Institutions and Money Changers are advised to note the above change and also that all other provisions/ regulations/instructions in this regard shall continue to be in force.

Best regards,