Covid-19: Postpone all loan repayments for three months, CBO tells banks

Business Wednesday 22/April/2020 15:05 PM
By: Times News Service
Covid-19: Postpone all loan repayments for three months, CBO tells banks

Muscat: The Central Bank of Oman (CBO) has asked banks and financial companies to allow Omani nationals who have taken loans from them the option of deferring repayment for a three-month period, if their salaries have been reduced due to the current COVID-19 pandemic.
A statement issued by the CBO said, “To all banks and financial or finance leasing companies operating in the Sultanate, we would like to request you to postpone the repayment of monthly loan instalments from those Omani workers who have had a reduction in their wages.”
According to the statement, all banks and financial companies are required to do the following:
1.Postpone the repayment of loan instalments provided by conventional personal and housing banks, as well as financing provided by Islamic banks and Islamic outlets for all types of personal and home financing. The postponement shall be for a period of three months from the date of commencement of the postponement, and the decision shall commence from the time the wages for the month of May are received, until further notice.

2.Postpone the payment of instalments according to the above, without accounting for any interest or profits on the balance due for the loan or financing during the period of postponement period and without any additional fees, and to work to reschedule the loans or financing if necessary."
This comes as part of implementing the decisions of the Supreme Committee for dealing with the coronavirus, which announced on April 15 a package of economic measures. This package was issued to reduce the effects of the precautionary measures related to the spread of the coronavirus and to support the Omani workforce in the private sector who have had a reduction in their wages, according to the mechanisms approved by the Ministry of Manpower.
With inputs from Oman News Agency