Subject: Deregulation of Interest Rates on Deposits and Imposition of a New Ceiling Rate on Loans and Advances

Licensed banks are hereby informed that the Board of Governors, at its recent meeting, decided to deregulate the rate of interest on deposits and reduce the ceiling rate on loans and advances by 0.5 percent (1/2 percent) per annum from the currently applicable maximum rate of 11.25 percent per annum to 10.75 percent per annum. Accordingly, with effect from October 1, 1993 the following guidelines shall apply to rates of interest to be paid and charged by banks in Oman.

1. Rates of interst paid by banks on deposits in Rial Omani

   • a) The guidelines issued to banks through CBO Circular No. BM 529 dated March 25, 1989 in regard to interest rates on Rial Omani deposits are hereby withdrawn and with effect from October 1, 1993, the rates of interest shall stand deregulated.