Oman’s banking regulator has relaxed specific provisions for restructured loans, in a move to ease the flow of credit to productive sectors. The specific provision for restructured loans, which was earlier set at 15% for 2016, has been spread over a three-year period – at 5% for 2016, 10% for 2017 and 15% for 2018, Hamoud Sangour Al Zadjali - executive president of the Central Bank of Oman, told the press. Al Zadjali also noted that the share of restructured loans to the total loan portfolio of banks marginally increased to 1.8 % by the end of June 2016, from 1.5 % in March 2016. “However, we expect that there could be some delays in payment due to the economic situation. So, perhaps some of the big customers will seek the restructuring of their loans. Going forward, we expect that restructured loans might increase slightly.” He also said non-performing loans at Omani banks have grown modestly to 1.9 % as of the end of June, 2016, from 1.8 % in March 2016. “However, there is no deterioration in the quality of credit on account of the economic slowdown due to low oil prices,” added the central bank chief. (Times of Oman)