To: All Licensed Banks Operating in the Sultanate of Oman

After Compliments,

Re: Interest Rate Ceiling on Personal Loans

1. Reference is drawn to Circulars BM 983 dated 23^rd December 2004 and BM 1001 dated 16^th April 2006.

2. Taking into consideration the global declining interest rate trends and the need to align the local interest rates and respond to the genuine request of all concerned to reduce the burden of the borrowers, the Central Bank of Oman has decided to reduce the ceiling interest rate on new personal loans extended from 1^st April 2008, from 9% p.a. to 8.5% p.a.

3. All banks shall comply accordingly.

Best regards,