Oman has paid OMR700 million ($1.8 billion) towards its maturing international sukuk bonds, cutting down the volume of public debt from OMR15.3 billion ($39.75 billion) by the end of 2023 to OMR14.5 billion ($37.66 billion) during the first half of 2024. This contributed to a decline in the ratio of public debt to gross domestic product (GDP) from 36.5 percent by the end of 2023 to 33.9 percent during the first half of 2024.
The Ministry of Finance revealed that it managed the country’s financial obligations through the repayment of external loans and the issuance of government development bonds. This falls under the country’s prompt settlement of financial obligations and its continuous review of relevant financing costs. The ministry also noted that the repayment of foreign debts during 2024 reflected in the distribution of risks associated with the public debt portfolio.
As a result, Oman’s ratio of external debt to the total volume of public debt declined from 74 percent by the end of 2023 to 71 percent during the first half of 2024, the ministry stated.
The ministry added that this repayment falls in line with the government’s efforts to decrease public debt and support the local debt market through a lower risk rate.
Read: Qatar commercial bank deposits rise 6.3 percent to $276.7 billion in April
In addition, it reaffirmed that the financial surpluses will go towards enhancing social spending, stimulating economic growth, managing financial obligations, reducing public debt, and building reserve buffers to manage financial obligations.
Hence, the government aims to strengthen Oman’s fiscal position, reduce the burden of public debt, minimize public debt risks, and enhance creditworthiness by improving credit rating indicators.
For more news on banking & finance, click here.
