Oman Society of Contractors moots 'I-Owe-You' notes

Muscat: Oman Society of Contractors, the representative body of contacting firms, has suggested the concept of a bond-like instrument called IOU (I-Owe-You) to pay outstanding bills of contracting firms by the government, on the lines of a recent Saudi proposal.
As payment from the state, contractors would receive bond-like instruments which they could hold until maturity or sell on to banks.
“We are trying to negotiate the concept of IOU again with the Ministry of Finance. But it is still under discussion,” said Shahswar Al Balushi, chief executive officer of Oman Society of Contractors (OSC).
However, he said, the ministry is making cash payments. “That is limited due to fund available for payment on a monthly or periodic basis.”
“An IOU will help companies to get credit from banks. At the moment, the Ministry of Finance has not given a clear picture whether this can be done or not,” added Al Balushi.