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Oman Plans 2021 Borrowing as Oil Price, Virus Batter Economy

The Omani capital Muscat during lockdown.

The Omani capital Muscat during lockdown.

Photographer: Mohammed Mahjoub/AFP/Getty Images

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Oman’s government will finance most of its budget shortfall in 2021 by borrowing to plug a fiscal gap battered by a decline in oil prices and the coronavirus pandemic.

The Persian Gulf state is looking into borrowing that will cover 73%, or 1.6 billion rials ($4.2 billion), of the country’s 2.2 billion-rial shortfall, with the remaining 600 million rials to be drawn from its reserves, according to a post on Twitter by the state-run Oman News Agency on Friday. The government based its 2021 budget plan on an oil price of $45 per barrel.