Muscat: The Ministry of Finance (MOF) has issued a financial circular (No 21/2020) on regulating financing instruments and means, whereby MOF instructed all Government units and companies to provide Debt Management Office (DMO) at MOF with their proposed annual financing plans by no later than January 31 of every year.
MOF emphasized 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.
MOF stated 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. --ONA
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