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Oman : OMAN DEVELOPMENT BANK inks 5 deals with banks to aid SMEs

July 8, 2014

Oman Development Bank (ODB) has entered into loan guarantee agreements with 5 banks operating in the sultanate. The bank has signed the deals with its efforts to make bank facilitations available for businessmen and small and medium enterprises (SMEs).

According to the bank, the agreements motivate the commercial banks to help SMEs with high levels of risk, as also Omani businessmen who have no sufficient guarantees to apply for loans.

The agreements was inked by Hamad al Harthi, acting general manager of ODB, Khalifa bin Said al Abri, acting CEO of the Public Authority for the Development of Small and Medium Enterprises, and CEOs or their representatives of Bank Muscat, BankDhofar, Bank Sohar, Al Ahly Bank and Bank Nizwa.

The deals give the commercial banks the right to get a governmental guarantee via ODB for a maximum of RO250,000 delivered to loan applicants. Harthi commented This loan program will give an opportunity to the commercial banks to provide loans to SMEs operating in Oman, while having a governmental guarantee. At the same time, this will help the banks achieve the lending ratio specified by the Central Bank of Oman, based on the decisions taken at the conclusion of the Symposium of the Development of SMEs held at Saih Al Shamekhat.

Harthi further added The program was earlier for a two-year experimental period, wherein ODB signed the same agreements with Bank Muscat and Oman Arab Bank. The program met with great success.

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Source: TendersInfo (India)

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