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Oman borrowed 600 million rials from a sovereign wealth fund, 1.77 billion rials from other sources

By on April 7, 2021 0

DUBAI, April 4 (Reuters)Oman has borrowed 600 million rials ($ 1.56 billion) from its sovereign wealth fund, the Oman Investment Authority, and an additional 1.77 billion rials through external and internal borrowing to partially fund its 2021 budget , said the Ministry of Finance.

Total borrowing of 2.37 billion rials represents 56 percent of the 4.2 billion rials in funding required this year, the ministry said in its March budget performance report.

The report came as rating agency S&P Global Ratings last week confirmed its long-term and short-term sovereign credit ratings in foreign and local currency on Oman.

S&P expects the increase in Omani government net debt to remain high through 2024, but is expected to slow from 2020, due to rising oil prices and a budget reform plan .

Oman faces large external debt maturities of $ 10.9 billion over 2021-2022, rating agency said, expecting to have to rely on external debt to finance deficits and debt maturing.

Oman was the first Gulf government to tap international markets this year, raising $ 3.25 billion in January. She also signed a loan of $ 2.2 billion in early March with a large group of banks.

The budget report indicates that Oman, at the end of March, still needed 1.83 billion rials in funding for this year.

By the end of February, Oman had paid 144 million rials in debt service and repaid 563 million rials in principal on some loans, according to the report.

($ 1 = 0.3840 Omani rials)

(Report by Saeed Azhar Editing by Peter Graff)

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