To: All Licensed Banks

Subject: Establishment of Standing Repurchase Facility

With reference to Oman Law No. 7/1974, the Banking Law of 1974, and especially Article 2-2.03(b) of Oman Law No. 7/1974 of Oman hereby announces, as of this date, the establishment of a Standing Repurchase Facility for Sultanate of Oman Securities, to provide short term liquidity to commercial banks. Under the new facility, the Central Bank will act as buyer in repurchase transactions. This additional facility will provide banks in Oman further flexibility in managing their liquidity.

The procedures to access this facility are similar to those set out in Oman Central Bank Circular No. MOD/REPO/98/545/1998 dated 26/12/98, where the Central Bank is the buyer. Banks are familiar with the procedures and should use a copy of the attached Confirmation Form to finalize the transaction. For the time being, transactions will be limited to the use of Sultanate of Oman Treasury Bills. Following are the terms under which the Central Bank will enter into these transactions.

Contract Term: From a minimum of 1 day to a maximum 28 days.