With weak oil prices seen leading to rising fiscal deficits and tightening liquidity in the banking sector in the Gulf region, the Central Bank of Oman (CBO) has urged corporates in the country to explore debt capital markets to meet their longer-term financing requirements. Speaking at the Oman Debt Capital Markets Conference on Thursday, CBO chief H E Hamood Sangour al Zadjali said banks have been meeting most of the financing needs of Oman's corporate sector, but risk premiums on conventional financing have increased. He said, “Banks in Oman are sound and well capitalised and provide for the financing requirements of corporates. However, debt financing is more suitable for corporates’ long-term requirements, while short-term working capital requirements are met by banks.”   H E Zadjali added, “The government raises debt for fiscal requirements and managing liquidity in financial markets. The pricing of these issuances also help in developing a yield curve which could be a benchmark for other interest rates.” He said the impact of the Oman government’s debt issuances - which are not very frequent - on domestic liquidity is at acceptable levels. “The CBO keeps a close tab on the liquidity situation through various tools. We do take measures if concerns become apparent. We also coordinate with the government in this matter through the liquidity monitoring committee,” H E Zadjali added. (Muscat Daily)