To: All Licensed Banks, Finance and Leasing Companies, Money Changers Operating in the Sultanate of Oman

After Compliments,

Re: Basis for Interest Calculation

1. Central Bank of Oman had been paying interest on 365-days basis and receiving interest on 360-days basis on the applicable transactions with licensed institutions.

2. On a review of the policy and procedure and in order to adhere to best practices and effect required harmonization, Central Bank of Oman has decided to follow 365-days basis in reckoning interest payables as well as interest receivables on all its transactions with licensed institutions. The change is effective from 1 January 2006.

3. Licensed institutions shall be guided accordingly.

Best Regards,