To: All licensed Banks operating in the Sultanate of Oman

After Compliments,

Sub: CBO Repo Rate and Buyback of CBO Certificates of Deposit

Please refer to CBO Circular BM 992 dated November 28, 2005, on CBO Repo and discount rates and Circular letter MOD/CD/2003/043 dated January 25, 2003 on the ‘establishment of repurchase and buyback facilities for CBO certificates of deposit’. With a view to promoting inter-bank repurchase transactions and trading in money market securities, CBO announces the following changes in its Repo rate and the buyback facility for the certificates of deposit.

1. Effective from 1st June 2006 the CBO Repo rate will not be linked to the 28-day CDs’ interest rate. The Repo rate will be announced by CBO independent of the CDs interest rate every week along with the auction results of CDs.

2. The CBO buyback facility in certificates of deposit stands withdrawn with immediate effect. The CDs will continue to be an eligible instrument for Repo transactions both interbank and with CBO.