Bahraini.TV

BankMuscat exposed to defaulting Saudi groups

by mahmood on 12/06/09 at 8:36 am · email  · print  

has direct exposure to two large Saudi groups – the Al Gosaibi Group and the Saad Group who have defaulted on their payment obligations across a number of banks.

These groups’ obligation to BankMuscat amounts to approximately 49 million Omani riyals (Dh465 million) through their Riyadh Branch, says a press release from the bank here on Thursday.

“One of our associates, BMI Bank, Bahrain, also has exposure to these groups, amounting to approximately 17 million Omani riyals,” the statement said.

The exposure of BM and BMI Bank is to the operating companies of the group and we have no exposure to The International Banking Corporation, Bahrain or Awal Bank, Bahrain which form part of these groups.

“Though these groups are in default on some of their obligations, we take comfort in the fact that the groups’ operating companies are profit making and based on the last published financials, have strong balance sheets,” the statement said.

Further, given the prominence of these groups, the size of their debts and the number of international and regional banks involved, we are confident the concerned governments and regulators would take proactive steps to ensure an orderly settlement of obligations.

The groups are in the process of appointing expert advisers to restructure their debts and we hope the process will be completed soon.