Subject: Article 14 of Oman Regulation No. BM/Reg/018/12/1979 (Signatures)

Licensed banks are hereby reminded that Article 14 of the Regulation on The Purchase Discounts and Rediscount of Commercial Paper gives banks a wide opportunity to obtain cash liquidity through the rediscounting of Commercial papers issued in relation to foreign trade transactions.

This Article provides for the possibility of rediscounting papers, which are issued in Rial Omani, by a non-resident exporter in consideration to goods or services forwarded to the Sultanate provided that it is accepted by a resident in the Sultanate.

The same applies in cases where bills are issued in Rial Omani, substantiating Omani exports and accepted by the non-resident importer.

The Commercial paper shall bear the signatures of two credit – worthy parties one of whom shall be a natural or juristic person within the Sultanate and shall relate to genuine trade transactions. The remaining period for the maturity of the bill shall not exceed 90 days at the time of rediscounting except in cases of financing seasonal, agricultural and fishing operations within the Sultanate wherein the remaining period for the maturity of the bill shall not exceed 180 days.