Htoo Thant 10 Nov 2017
Australian Air Force personnel unload humanitarian relief supplies for flood victims in Myanmar in 2015. Photo – EPA
Australian Air Force personnel unload humanitarian relief supplies for flood victims in Myanmar in 2015. Photo – EPA
The government has asked for additional funds to repay a Chinese loan for the purchase of three Myanmar National Airlines (MNA) aircrafts in 2009, U Kyaw Myo, deputy minister of the Ministry of Transport and Communications said in the parliament on November 8.
State-owned MNA bought the three MA-60 planes from China for CNY399 million (K81 billion) following a loan agreement between China EXIM Bank and Myanmar Foreign Trade Bank.
MNA took delivery of the aircraft in 2010. However, due to accidents and damage, two of the aircraft have been taken out of service while the third aircraft was also grounded “as it was not fit to fly”, according to U Kyaw Myo.
While partial loan repayments have been made, the outstanding principal and interest payment amount is still in excess of CNY300 million.
The loan is expected to be repaid in full only by 2029.
Though MNA will contribute to the repayments, the government will shoulder the bulk of the burden.
“The government has committed to taking responsibility for paying back the loan for the three MA-60 planes which are no longer in service,” U Kyaw Myo noted.
Ref: https://www.mmtimes.com/news/government-seeks-funds-repay-loan-3-grounded-mna-aircraft.html