Oman’s government is turning to alternative funding sources such as procuring a USD5bn to USD10bn loan from the international market, said Hamoud Sangour Al Zadjali, executive president of the Central Bank of Oman, in an interview with Oxford Business Group (OBG). The additional fund is to avoid draining liquidity from the local banking system. The Sultanate last week raised USD2.5bn from its first international bond sale in almost two decades as it seeks to plug a budget deficit caused by crude’s decline. The Sultanate sold USD1bn of five-year notes at a yield of 245 basis points over the benchmark midswap rate and USD1.5bn of 10-year bonds at a spread of 320 basis points, according to a person familiar with the matter. Al Zadjali told OBG that falling state deposits amid the downturn in oil prices has led to a moderate liquidity squeeze in the banking sector. In the interview, the central bank chief also discussed on the Sultanate’s commitment to maintaining the fixed peg with the dollar, despite speculation that it could be dropped. (Times of Oman)