Myanmar Suspends Foreign Loan Repayments Amid Dollar Crunch
- Central bank asks residents to adjust repayment schedules
- Junta allows wholly foreign-owned financial institutions
This article is for subscribers only.
The Central Bank of Myanmar ordered companies and individual borrowers to suspend repayment of foreign loans, the latest in a series of steps to defend the nation’s dwindling foreign exchange reserves.
In a letter to banks licensed to deal in foreign exchange, Deputy Governor Win Thaw directed borrowers to suspend the repayment of interest and principal of various foreign loans obtained either in cash or in kind. The directive requires licensed banks to inform their business customers with foreign debt to adjust loan repayment schedules with overseas lenders.