At the outset we would like to thank MSM for their letter dated 20 January 2010 concerning a complaint by Mr. Mohammed Zaman, a customer of the bank, in respect of a loan made to Mr. Zaman and his wife.
The bank takes very seriously any complaint from its customers. In this case the matter has been fully reviewed and the substance of this complaint is fallacious and should be viewed in the context of a customer's apparent difficulties in complying with the conditions of, and repaying, a loan taken from the bank.
The customer is in breach of the covenants of the loan. The bank's maximum exposure under the loan is RO. 5,800,000 and the bank has made provisions according to Central Bank of Oman requirements. The bank's legal position is strong, it is taking all necessary steps to protect its position, and it expects to recover the loan.
The Capital Markets Authority and the Central Bank of Oman are aware of these matters on which the Central Bank of Oman has conducted an independent investigation.