A fee of 1 per cent of the total amount of the loan is charged against the guarantees the bank provides for opening Letters of Credit with commercial banks relating to the import of machinery and equipments for projects or purchasing same from the local market. The loans or guarantees extended to any one project may amount to 100 per cent of its paid capital or 10 per cent of the total resources of the bank whichever is lower. The bank may participate in the share capital of a company or underwrite an issue of shares of a company to the public up to 51 per cent of the capital of such company or 10 per cent of the total resources of the bank whichever is lower. For further information contact Director of Incentives, Ministry of Commerce and Industry P0. Oman Development Bank, P0.
Oman is the only country in the Gulf to provide export credit insurance.
EGFU issues export credit insurance policies for the export of Oman goods on short-term credit up to 180 days or on cash terms. The manufacturer is insured against buyer risks that include insolvency of the buyer non-payment of goods accepted by the buyer the buyer's failure to accept the goods. If a bad debt arises from any of these factors EGFU pays the manu facturer up to 80 per cent of the loss if it is due to buyer default and up to 85 per cent of the loss if it is as a result of country risks. Export Finance Support comes in the form of a letter of authority as additional collateral or an interest subsidy. EGFU can assign the export credit insurance policy to the financing bank under a letter of authority, which is acceptable as a valuable form of additional collateral.