Over 400 businesses to face action over unpaid COVID-19 relief loans issued under NLD
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Pearl/ Hsu (NP News ) - September 3
More than 400 businessmen who failed to repay COVID-19 loans issued by the NLD will face legal action, according to information obtained by The Statesman Journal from the Working Committee to address the impact of COVID-19 on the National Economy.
Of the MMK 158.4438 billion loaned from the COVID-19 Fund to a total of 5,990 companies and business owners, 3,070 have repaid their loans, returning MMK 88.2196 billion.
While 931 borrowers still owe MMK 19.1479 billion in interest payments and 1,567 have made only partial payments, leaving MMK 10.9555 billion outstanding, the most serious issue is the 422 business owners who, as of June 2025, have not repaid any of the principal or interest on their loans. Their outstanding debt totals MMK 8.002 billion.
Daw Thida Kyu, Secretary of the Committee, told The Statesman that many loan terms had already expired.
“During the previous government, loans were issued to 5,990 businesses, with repayment terms extended to three years. That period has now passed, and for some businesses, repayment deadlines have been overdue by more than a year,” she said.
The 422 businesses that have not made any repayments will face administrative actions. These include suspending business licenses, closing businesses, freezing bank accounts, blacklisting companies and individuals, restricting asset transfers or sales, and even imposing travel bans.
The Committee will also forward the lists of defaulting businesses to State and Regional Chief Ministers. If repayments are still not made, legal action will be taken in accordance with the signed loan agreements.
According to Daw Thida Kyu, “Since the State requires funds for post-earthquake reconstruction and development projects, financing is urgently needed. The government has already shown patience by granting a total repayment period of three years.
With the State Administration Council's (SAC) permission, our committee is now authorized to enforce repayments. Businesses that have only partially repaid or have paid interest alone will also be instructed to settle their outstanding amounts within three months.”