Thursday, June 29, 2017

National debt, Chinese loan terms discussed at Pyidaungsu Hluttaw

 June 28, 2017
The Pyidaungsu Hluttaw discussed Myanmar’s debts, relations to creditors and deficit spending during its regular session yesterday in Nay Pyi Taw.

The discussion arose out of an official report of the Public Accounts Combined Committee which lays out the government’s debt management strategy in 2017.

According to Daw Khin San Hlaing of Pale constituency, Sagaing Region, Myanmar currently has a US$9 billion debt to various foreign governments and international finance entities.

“Most of our debts have been described as low-interest loans,” said Daw Khin San Hlaing. “In fact, this is not true. Average interest rate of foreign loans 1.85%, being between zero and 4.5% actually. Grace periods for international finance are often up to 10 years. But China, creditor of 44% of our total debt has permitted only a five-year forbearance.” U Khin Maung Thi of Loilem constituency said, “Medium-term debt management strategy should follow a ratio where local and foreign debts and GDP in FY 2016-2017 are related. Compared to ratio of total debts and GDP of FY 2015-2016, that of FY 2016-2017 was found to have decreased. So to maintain low debt, loans should be obtained from international organizations and foreign governments at low interest.”

U Maung Maung Win, Deputy Minister for Planning and Finance said, “the Union budget will include Ks5.2 trillion in total loans in FY2017-2018.” The deputy minister said that the Asian Development Bank, the World Bank, the International Monetary Fund and other international finance organizations were assisting Myanmar’s government to standardize its debt management.

Myo Myint, Aye Aye Thant (MNA)

Ref; The Global New Light of Myanmar

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