To: All Licensed Commercial Banks in the Sultanate of Oman

After Compliments,

Sub: Guidelines on Management of Country and Transfer Risks

Please refer to our letter No. BSD/2006/OBMU/Banks/441 dated April 15, 2006 enclosing therewith, draft regulations on country and transfer risks for comments of banks. The draft proposals have been revised, among other things, in the light of views/suggestions of banks. The final guidelines envisage an appropriate policy and operational framework for assessment and monitoring of country risk, which is provided hereunder for implementation by banks.

Introduction: