(MENAFN - Muscat Daily) In line with its efforts to make bank facilitations available for entrepreneurs and small and medium enterprises (SMEs), Oman Development Bank (ODB) has signed loan guarantee agreements with five banks operating in the sultanate.
The agreements encourage the commercial banks to support SMEs with high levels of risk, as also Omani entrepreneurs who have no sufficient guarantees to apply for loans, a press release said on Monday.
The agreements, signed 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, give the commercial banks the right to obtain a governmental guarantee through ODB for a maximum of RO250,000 provided to loan applicants.
''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,'' said Harthi.
''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,'' added Harthi.