By Conrad Prabhu & Vinod Nair — MUSCAT: Oct 24:
Speaking at the Outlook Oman forum, on Monday, Hamood bin Sangour al Zadjali, Executive President, Central Bank of Oman (CBO), said the rest of the deficit will be financed locally by drawing from the State General Reserve Fund (SGRF). He said the combination of external and domestic borrowings will roughly be in the ratio of 60:40.
Zadjali, however, assured there was enough liquidity in the market and “banks are investing in government papers as well, so the government is able to pump that money back into the economy”.
Boding well for Oman are favourable international lending terms, said Al Zadjali. “Our debt ratio prior to 2015 has been very low, while the global interest rate continues to be benign. The reputation of the Sultanate in terms of borrowings is very good too. We have seen a big appetite on the part of lenders to lend to Oman.”