How the Sultanate of Oman benefits from buying issued bonds in precedence?

United Securities Company Chief Executive Mustafa Salman said Omani Finance Minister’s announcement of the repurchase of previously issued $ 1.75 billion worth of government bonds is a great step to restore confidence in public debt and raise the rating of the Sultanate.

Mustafa Salman added in an interview with Al-Arabiya today, Thursday, that this step supports the banking sector and increases the credit rating of the Sultanate, which leads to an increase in the rating of banks and financial services firms and supports the banking sector and corporations when to take in loan in future.

He explained that this liquidity is usually directed to infrastructure, noting that savings are expected in the Sultanate from the oil price hike by an additional 80% over the general budget, which helps reduce public debt, supports reclassification and gives comfort in taking in loan.

The chief executive of the United Securities Company said the government had previously clearly announced its work to reduce public debt after it had reached 88% of the state’s public income, and now it has dropped to 62%, and the state try not to leave future debts for generations future.

He added that the government has separated government corporations from government figures, and therefore the loan will be through corporations and will not be a direct government loan that will help stabilize the Sultanate’s credit rating. in future.

The government of the Sultanate of Oman has announced a tender to purchase a group of its issued bonds, according to a document obtained by Reuters from banking sources.

The maturities and sizes of the bonds issued vary, up to $ 2.5 billion, with no accrued interest.

The race will be run by Citi, Goldman Sachs and HSBC, with the deadline for the competitive race on June 28.

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