Foreign loan payment suspension only for business growing period
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NP News - July 20
The Central Bank of Myanmar told that the directive to suspend repayment of foreign loans is only for the period while businesses are booming.
Repayment to the foreign loans will be a burden for the businesses while they require additional capital investments to expand their business operations. That is why temporary suspension is made to assist them in re-boosting businesses, the CBM said.
“This directive is only for the period when businesses are gaining momentum. When business operations return to normal, interests and principals will be repaid. This won’t impact much on foreign investments,” an official from the CBM said.
Monetary instability and labour availability play key factors when the entrepreneurs who obtained foreign loans are trying to recover their businesses in various ways in the post-Covid period, the CBM said.
Regarding the local residents receiving foreign loans, the CBM ordered the Authorized Dealer licensed banks to make negotiations with the lenders (from abroad) on the ‘Repayment Schedule’ for receiving foreign loans by the local residents in cash or properties so that the local residents can postpone repayment, as per the Foreign Exchange Management Law’s Section 29 (a), Section 38 (d) and Section 42 (a).