A report issued by the National Center for Statistics and Information on the expansion of the banking sector in the Sultanate of Oman showed its policies related to supporting the economy by increasing the credit ceiling granted to companies, investors and individuals.
According to the statistics, the banks' contribution to financing development plans rose significantly at the end of last January by 3.9 percent on an annual basis. While the volume of loans granted amounted to 27.9 billion riyals ($72.5 billion), compared to $69.6 billion a year ago, the average interest rate on total loans increased by 0.1 percent.
The statistics reveal that the foreign assets of the Central Bank of Oman grew by 5.5 percent to reach nearly $19 billion. On the other hand, the total volume of domestic liquidity witnessed an increase of 2.8 percent to reach more than $51.9 billion.
The growth of credit granted to investment projects proves the stability and durability of the banking sector, despite warnings of the possibility of a widening gap in non-performing loans, which is a safety valve for the government's economic reform program in light of the many financial challenges facing the Sultanate of Oman. The interest rates, which do not exceed two percent, contribute significantly to the growth of lending operations, as they are a special incentive for companies and investors.
Source (Al-Arab Newspaper of London, Edited)
