Muscat: The Ministry of Finance (MOF) has issued a circular (No. 21/2020) where it has instructed all government units and companies to provide their proposed annual financing plans latest by January 31 every year to the Debt Management Office (DMO) at the Ministry.
MOF emphasised the importance of coordination with DMO before initiating any procedure to select local or foreign lenders for any form of borrowing, and also prior to liaising with the issue managers or financial advisors in relation to the bonds or Sukuk proposed to be issued.
The Ministry said that it is essential to obtain an approval from DMO for any proposed loan contracts before and after negotiating with the lenders.
DMO approval must also be obtained for the details and terms and conditions of the bonds or Sukuk prior to the issuance.
This circular comes within MOF efforts to manage financing needs and limit the borrowings to purposes of high-priority listed in the State’s General Budget, in line with debt management strategy.