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Merge 104.8 | 06 October 2021
The Central Bank of Oman (CBO) issued a number of stimulus packages with the aim of alleviating some of the impact of the COVID-19 pandemic. The central bank listed four categories who will benefit from the packages.
The first one includes Omani citizens who lost their jobs. They will be eligible for deferment of installment until December 31st, 2022, or until they find another job, whichever comes first. The bank added that interest will not be charged during the deferment period.
The second category is for Omani employees who have had their wages reduced. They will get an interest-free deferment period, along with the permission to exceed the debt-burden ratio.
The third category is for pensioners from the public and private sectors. Banks were asked to continue to modify the terms of repayment of existing personal loans/finance, so that the maximum debt-service ratio does not pass 30% of the monthly pension if it is RO 1500 or less, and 35% if the monthly pension is over R0 1500.
The fourth and final category is for Riyada cardholders. The CBO ordered banks and Finance & Leasing Companies to continue to postpone instalments, interests and profit due from them, until December 31st, 2021.
The CBO asked the lending institutions and the borrower to work out how to restore the normal repayment schedule or reschedule the loans between themselves before that period ends, taking into account the expected cash flows of the borrowers concerned.
The CBO also announced that it will be allocating RO 7 million to cyclone-affected individuals, and it called on all banks to do their part to help in mitigating the effects of Cyclone Shaheen.
