CBO issues directives to banks on loan installments

Muscat: The Central Bank of Oman (CBO) has directed banks, finance, and finance leasing companies to accept all requests for deferment of loan installments/interest/profit for affected borrowers, particularly SMEs, with immediate effect for the next six months without adversely impacting the risk classification of such loans.

A circular by CBO also said banks and financing companies operating in the Sultanate are required to postpone the payment of loan installments provided by them to the Omani workforce whose wages are reduced for a period of three months from May 2020 until further notice.

Two Islamic banks in Oman will allow customers to defer the installment of their home loans by three months – May, June, and July due to the current Covid-19 situation prevailing in the country.

“As part of Bank Nizwa’s efforts to support our customers during the difficult circumstances caused by Covid-19, we offer installment deferral for May, June, and July to all our Home finance Ijara, diminishing Musharaka customers drawing a net monthly salary of RO1,500 or less in Solidarity with the nationwide efforts,” said a statement from the bank said.

“As part of Alizz Islamic Bank’s efforts to support customers affected during the current adverse circumstances, we will be offering all our customers who earn a net salary of RO1,500 and below and that have home finance Ijarah/diminishing Musharakah or commercial finance Ijarah diminishing Musharakah facilities to defer their finance installments up to three months (May, June, July) from May 1′ 2020,” the bank said.