Oman Continues to Manage Public Debt, Slashing it by RO 2.2 billion

muscat
muscat

The government of the Sultanate of Oman has been able to buy back some international bonds prior to their maturity date. To this effect, Oman performed the first auction of its kind in the region, with the tender estimated at RO 269 million ($701 million), less than the nominal value of the bonds.

The government is also taking steps to settle a high-cost funding loan valued at RO 512 million during this month, prior to its date of maturity.

Meanwhile, the government has issued local deeds to substitute part of another high-cost debt with less costly deeds by floating the deeds at Muscat Stock Exchange (MSX).

The overall instruments generated surplus from the interest resulting from the loans and bonds settled prior to their maturity, with a lumpsum value of RO 127 million ($330 million) deducted from the future debt service. This will enable the government to divert the surplus to spending areas of priority, thereby enhancing investor confidence and ameliorating the Sultanate of Oman’s credit rating.

The government’s successful efforts to cut down its public debt benefit from fluctuating interest rates on international debt markets, while at the same tapping additional financial resources from high oil revenues as at the end of this month (July 2022). Accordingly, the overall debt is expected to come down to RO 18.6 billion, compared to RO 20.8 billion by the end of 2021.

The government affirmed that it is pressing ahead with public debt management efforts (through the utilization of additional financial revenues) and expediting the pace of economic recovery.

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