Why bad loans are likely to rise in Oman in 2021?
Dubai: Omani banks’ are likely to face further deterioration in asset quality in 2021 due to the lingering impact of economic disruption caused by the pandemic and the government’s restrictive fiscal policy, according to Fitch Ratings. “We expect the sector’s Stage 3 loans ratio [credit losses, classified under IFRS-9] to increase by 100 basis points (bps) to 150bps from 4.4 per cent at end-2020 as borrower support measures expire and loan classification normalizes,” the raging agency said. Oman’s GDP contracted by 4.9 per cent in 2020. Challenging economic conditions are likely t...
Source: gulfnews.com