MUSCAT: Adnan Haider Darwish, General Manager of Oman Housing Bank (OHB), revealed that the number of loans granted last year reached 1,841 loans worth RO 80 million while the total loans granted by the bank since its establishment in 1977 reached 44,288 loans worth RO 1.08 billion.
Darwish also stressed that non-performing loans are at low levels and likely to be the lowest among the banks operating in the Sultanate. Subsequently, the bank is not facing any problems in that respect.
The bank’s general manager attributed this to the effective policy of collecting loan instalments. The loan is paid by the borrower’s employer to the bank without having control over payment suspension. Moreover, the bank’s loans are secured by mortgages, and all the financed properties are insured against multiple risks, even the borrowers themselves are insured.
Concerning the mechanism of dealing with cases of default, Darwish explained that the bank’s system is checking all cases including the circumstances that are required to be taken into consideration after conducting the necessary research and a detailed study of each.
Among the roles and responsibilities of the bank is the implementation of the public or private housing complexes or participating in financing them. He also added that the statute of the bank stipulates these responsibilities and roles, and are included in the bank’s strategy. But, he pointed out that the bank will engage in such projects in the suitable time.
Darwish referred to the effects of oil prices decline crisis since 2014 on the real estate and housing sector. He denied that the bank was affected by this crisis and stressed that there was no impact of the decline in the oil prices concerning the allocations of loans granted.
The budgets of these loans remained the same as before the drop in oil prices took place. The government, under the wise leadership of His Majesty Sultan Qaboos, is giving special attention to the housing sector. Providing adequate housing for the citizen is one of the basic needs, which is necessary for a decent life.
However, Darwish acknowledged the impact of the decline in oil prices on the real estate sector significantly. Subsequently, other sectors were also affected, as many economic sectors are connected with real estate sector in case of rising or decline. — ONA
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