IMF sees no credit crunch in #Oman, advises speedy fiscal reforms | Reuters

IMF sees no credit crunch in Oman, advises speedy fiscal reforms | Reuters:

Oman is not facing a credit crunch but the Gulf Arab oil producer should speed up implementation of fiscal reforms like the introduction of a value-added tax (VAT), an IMF official said.

In December, rating agency Fitch downgraded Oman - among the hardest hit in the region by the drop in oil prices - to “junk” status, citing fiscal challenges from oil market volatility.

Omani government debt yields spiked on the back of the downgrade and the cost of insuring against a potential debt default has increased by over 25 percent since then.