OCCI calls for deferring loan repayment for SMEs

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Oman Chamber of Commerce and Industry (OCCI) has stressed the importance of rescheduling loan repayment by small and medium-sized enterprises (SMEs) without fees until the beginning of next year. It will contribute to developing the private sector as also to push forward the economy.

Besides ensuring the companies’ continuity, it would help them withstand the impact of the COVID-19 pandemic.

The OCCI has stressed the importance of providing support packages to the private sector institutions in general and the small and medium enterprises in particular, to help these institutions overcome the challenges posed by the coronavirus (COVID-19) crisis and to facilitate the recovery process of these institutions.

An event with the theme, ‘Challenges and difficulties of SMEs in light of economic changes’ was organised by the OCCI on April 17 under the auspices of Dr. Mahad bin Saeed Baween, Labour Minister.

Eng. Rida bin Juma Al Saleh, Chairman of OCCI Board of Directors, said the issue of SMEs was important, as they contributed greatly to global economies.

They represent roughly over 90 percent of all companies, employ 70 percent of the workforce and contribute 50 percent to the gross domestic product on a global scale.

He said the global economies recognised the SMEs not only as a tool to provide job opportunities, but as engines of economic growth and social developments in addition to their role in stimulating innovation and competition in markets.

He also said that we are hoping to provide packages of support and facilities to private sector institutions in general and small and medium enterprises in particular.

The measures include persuading banks and finance companies to cooperate with the affected borrowers, especially the small and medium enterprises and reschedule the loans without any fees till the beginning of next year.

Dr. Abdul Aziz bin Muhammad Al Hinai, CEO of Oman Development Bank, said that during the past two years, as a result of the impact of the Covid-19 pandemic, the bank provided nearly 8,000 emergency loans to small investors as well as a package of ‘rescue loans’ to small and medium enterprises in the form of ‘circulating capital’, payable between 90 and 360 days.
He noted that most of these loans were given to pay the institutions’ obligations for their continuity and overcoming challenges, and that the bank is planning new post-pandemic recovery packages.