To: All Licensed Banks Operating in the Sultanate of Oman

After Compliments,

Re: Lending Ratio

1. Attention of licensed banks is drawn to Circular BM 887 dated 18th April 2000.

2. The Board of Governors of Central Bank of Oman, in the meeting of 9th June 2008, reviewed Bank Credit growth and related matters and decided that lending ratio of licensed commercial banks shall stand reduced from present 87.5% to 85% with effect from 1st August 2008 and to 82.5% with effect from 1st November 2008.

3. Banks are advised to note the above for prompt compliance, noting that all other instructions on the subject remain unchanged (Article 1 of Regulation BM/REG/44/7/98 is being suitably amended).

4. Central Bank adds that it is effecting the changes in the context of overall macroeconomic and larger considerations, among others, to moderate credit growth to orderly and reasonable level and mitigate risks of excessive credit growth in general and in sensitive/unproductive sectors in particular. Accordingly, banks are required to lend to productive sectors with no difficulty or hardening of credit terms and moderate growth in personal loans and sensitive sectors and the like of lesser priorities and value-additions.