Oman bank says no impact on project finance by oil
An official from Oman Development Bank said the organisation has not seen the effects of a slump in oil prices on the projects it funds, despite the dip in government expenditure
Oman Development Bank (ODB) said the projects it is financing have not been affected by the slump in oil prices, despite the drop in government expenditure.
"Although the government decided to cut its aid to ODB 's loans by half, we have not raised the interest rate," Khamis Hamood Al Sabahi, senior corporate credit manager at ODB, said.
Al Sabahi said "non-performing loans" have seen a drop through the years.
"In the past, the rate was around 60% to 65%, while today it is less than 9%.
"Only 3% of the loans paid after 2006 are non-performing," he added, as per Times of Oman.
Al Sabahi has also added that the bank is looking to finance projects in other sectors, without disclosing any further.
Of complaints from construction entrepreneurs about the lack of funding from ODB, Al Sabahi added: "Construction sector is not a priority to us."
Small and medium enterprises (SMEs) comprise at least 90% of the 4,500 projects which the bank funds every year.