To: All Licensed Banks operating in the Sultanate of Oman

After Compliments,

Sub: Calculation of Discount/Buyback/Rediscount On 365 days Basis

Please refer to Circulars BM 382 dated September 12, 1983, on the subject of ‘The Purchase, Discount and Rediscount of Commercial Papers”, BM 478 dated June 20, 1987 on the subject of ‘Guidance Rules for Treasury Bills Issuance and Related Transactions” and MOD/CD/2003/043 dated January 25, 2003 on the subject of establishment of repurchase and buyback facilities for CBO Certificates of Deposit. Licensed banks are hereby advised that the basis (‘number of days’) for calculation of charges for rediscounting of commercial papers, discounting of Treasury Bills and buyback of CBO CDs has been changed to 365 days from 360 days. Accordingly, the concerned provisions in the Circulars referred to above stand revised as follows:

1. Commercial Papers

2. Article 40 (1)

   Interest shall be calculated on a 365 days basis from the date of discount until one day prior to the date of maturity.

3. Treasury Bills

   Guidance Rule D.5