Muscat: The Sultanate of Oman has secured a $1 billion-loan to finance the needs of the State budget amid plummeting oil prices in international markets.
Minister in charge of Financial Affairs Darwish Al-Balooshi signed the five-year loan-agreement with eleven banks on behalf of the Government of Oman, including two from the region, reported Arabic daily Al-Jazirah.
“The participation of this number of leading international banks in the loan reflects trust in the strength of the Omani economy,” Darwish Al-Balooshi said.
The sultanate, a small oil exporter, raised funds through a syndicated loan at 120 basis points over the London interbank offered rate (Libor), Nasser al-Jashmi, under-secretary at the ministry of finance told Reuters.
The Government had announced the state budget with a forecast deficit of OR3.3 ($9 billion), which represents 38% of the state revenues.
The 11 banks participating in the loan include Citigroup, Gulf International Bank and Natixis, who were the initial bookrunners for the transaction.
The other banks are National Bank of Abu Dhabi, Societe Generale, Sumitomo Mitsui Financial Group, Bank of Tokyo-Mitsubishi UFJ, JP Morgan, Credit Agricole, Standard Chartered and Europe Arab Bank.
&uuid=(email))