Bank Muscat signs credit line agreement with PTA Bank
Bank Muscat recently signed a credit line agreement worth five million dollars with the Eastern and Southern African Trade and Development Bank (PTA), reported AsiaPulse.
Under the terms of the agreement, Bank Muscat will provide the PTA Bank with credit line facilities to support letters of credit for the export and re-export of goods and services from the Sultanate to East African countries. This mechanism, while providing assurance of payment to the Omani exporter, would allow the exporter to consider providing a credit period to the importer and, therefore, lead to increasing trade volumes.
Oman’s exports to Tanzania, Kenya, Zambia and Zanzibar amounted to 45 million Omani Rials ($116.8 million) in 2000, which is equivalent to six percent of the Sultanate’s total exports. The bulk of the exports to these countries comprise of motor parts for vehicles, car motors, bus tires and wheat flour. — (menareport.com)
© 2002 Mena Report (www.menareport.com)