International and regional lenders have reopened talks with Omani borrowers for new syndicated loans just weeks after initial discussions stalled over a sovereign rating downgrade, the coronavirus pandemic and plummeting oil prices. Lenders are considering a sovereign loan for the sultanate and a loan for OQ, formerly known as Oman Oil. In March, the sultanate was forced to put a US$2bn sovereign loan on hold after it was downgraded by Fitch further into junk territory, to BB from BB+. The impact of Covid-19 and a crash in oil prices were also contributing factors. However, lenders are now willing to resume talks as the initial panic in the market begins to ease and oil prices have risen after OPEC agreed to extend oil output cuts until the end of July.
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