To: All Licensed Banks Operating in the Sultanate of Oman

Subject: Foreign Currency Borrowing by the Omani Domestic Banks

After Compliments,

Licensed banks in the Sultanate of Oman are hereby informed of the following guidelines determined by the Board of Governors of the Central Bank at its meeting on 16.12.1998, in respect of foreign currency borrowings by licensed banks in Oman:

1. The Board of Governor wishes to inform that it is not averse to the resource mobilization of local banks through foreign currency borrowings from abroad since such resources could be a supplementary source of funds for the banks to help in the development of the economy.

2. However, giving serious thought to the incidences of catastrophic propositions that afflicted and imperiled the economies of certain countries due to injudicious overdependence, particularly on short-term resources from abroad, the Central Bank is convinced that the banks as well as the Central Bank should exercise utmost prudence in soliciting such resources by banks.