MUSCAT: Oman on Wednesday announced it has taken out a $3.55 billion loan from Chinese banks to cover its budget deficit for the current fiscal year.

The sultanate had originally planned to raise $2bn on the Chinese market but raised the amount because of strong demand, the finance ministry said.

It said Oman had previously raised $5bn with a bond issue and another $2bn in Sukuk, or Islamic bonds.

The loans aim to cover the deficit in the 2017 budget, deputy finance minister Nasser al-Jishmi was quoted as saying.

Oman, a non-Organisation of the Petroleum Exporting Countries (Opec) producer, which pumps a modest 1 million barrels per day, in January announced a deficit of 3bn riyals ($7.7bn) and vowed to press on with an austerity programme to combat the global slump in oil prices.

Published in Dawn, August 3rd, 2017