To: All Licensed Banks operating in the Sultanate of Oman

Subject: Extension of Credit to Both Omani Nationals and Expatriate Persons Against the Security of Foreign Currency Deposits Held with Overseas Banks/Branches and Other Foreign Currency Denominated Bonds/Certificates etc.

Reference is invited to our Oman Central Bank Circular No. BM677/1993 dated January 6, 1993 wherein it was specifically advised that no commercial bank operating in the Sultanate of Oman shall extend any credit facility to expatriate persons whether individual or corporate against the security of foreign currency deposits held by them with overseas banks/branches irrespective of where such deposits are held and whether in a country whose currency is convertible or non-convertible.

Pursuant to a Resolution adopted by the Board of Governors in their meeting held on December 16, 1998, it is herby advised that :