To: All Licensed Banks operating in the Sultanate of Oman

After Compliments,

Re: Basis for Interest Calculation

1. Central Bank of Oman, on a review of licensed banks’ practices and in order to ensure fairness, harmonization and good practice, advises all licensed banks to charge interest on applicable Rial Omani receivables, including Rial Omani loans, on 365-days basis – as they reckon interest payable.

2. In order to enable the banks to effect change in IT system, licensed banks are given time and they should make the change effective not later than 1 October 2006 and confirm.