Oman Central Bank Circular No. BM916/2001

Foreign Currency Borrowings by Licensed Banks Incorporated in the Sultanate of Oman

To: All Licensed Banks incorporated in the Sultanate of Oman

Subject: Foreign Currency Borrowings by Licensed Banks Incorporated in the Sultanate of Oman

After Compliments,

Attention of all Licensed Banks incorporated in the Sultanate of Oman is invited to the intimations of the Central Bank, separately to each bank, on the captioned subject specifying the limits of such borrowings under three time bands as shown below

Borrowing by Tenure

Definition

Limit

1

Short term

Borrowing with a time to maturity of up to two years from a given date

Up to 100% of net worth.

2

Medium term*

Borrowing with a time to maturity of two to five years from a given date

Up to 200% of net worth. This limit should include the limit specified for (1) above

3

Long term*

Borrowing with a time to maturity of over five years from a given date

Up to 300% of net worth. This limit should include the limits specified for (1) and (2) above.