26 Feb 2018
MYANMAR: Overseas Banks Get Go-Ahead to Lend to Domestic Exporters
For the first time, foreign banks will be permitted to extend credit to the country’s export-oriented businesses. Although not yet officially confirmed by the Central Bank of Myanmar (CBM), seven unnamed foreign banks are believed to have already been approved as lenders, with a further six still being processed.
It is understood that the CBM will not impose any cap on lending rates or on loan amounts, with the approved banks being left to agree such details with applicants in line with their own terms and conditions. The initiative forms part of the government’s bid to liberalise the country’s financial sector and follows its 2016 move to grant domestic operating licences to four new foreign banks.