ANNOUNCEMENT 04 Dec 2018

Foreign banks are allowed to provide loans in foreign currency and also set their own interest rates.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Foreign banks allowed to set foreign currency loan interest rate
https://www.mmtimes.com/news/foreign-banks-allowed-set-foreign-currency-loan-interest-rate.html

Myanmar Legal Alert: Myanmar Branches of Foreign Banks Now Permitted to Set their Own Interest Rates for Foreign Currency Loans
https://www.dfdl.com/resources/legal-and-tax-updates/myanmar-branches-of-foreign-banks-now-permitted-to-set-their-own-interest-rates-for-foreign-currency-loans/

Central Bank Won’t set Interest Rate for Foreign Bank Loans
https://www.mmbiztoday.com/articles/central-bank-won-t-set-interest-rate-foreign-bank-loans

Inception date: 26 Nov 2018 | Removal date: open ended

FDI: Treatment and operations, nes

According to several news reports, the Central Bank of Myanmar has amended the policy for lending by foreign banks. Foreign banks are now allowed to lend in foreign currency in addition to local currency. Additionally, they are free to set the rates of interest for the loans provided in foreign currencies. The interest rate in local currency, however, has been capped at 13 percent.

The official directive for this amendment could not be sourced and the date of implementation of this intervention has been set as the date of the earliest news report listed.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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