WORLD Bank and government representatives recently signed an agreement for a US$100 million (K134.9 billion) World Bank loan to the Myanmar Financial Development Project in mid-April.
The Myanmar Financial Development Project is aimed at creating a vibrant financial sector.
The representatives signed the loan for SDR71.700 million, which equals US$100 million, from the World Bank with low interest. Ulrich Zachau, country director, Southeast Asia, East Asia and Pacific for the World Bank, signed the financial agreement with the representative of the Treasury Department, under the Ministry of Planning and Finance, and the project agreement with the Central Bank representative for loan requests.
The loan comes from the World Bank International Development Association’s fund intended for developing countries. According to loan regulations, the service charge of 0.75 per cent per year will be postponed for six years, and the repayment period is 32 years. Thus, the long-term loan without interest can last for a total of 38 years.
The Hluttaw has confirmed the loan request, and the Ministry of Planning and Finance and the Central Bank will implement the Myanmar Financial Development Project.
The project aims to promote a strong and stable financial sector, expand the banking sector and make changes to improve loan and financial services. There are also plans to improve small-scale financial businesses and insurance companies to support the country’s growth, the World Bank announcement stated.
The project will help improve the government banks’ services, encourage strong financial institution laws and management policies, and modernise the basic building blocks of the financial sector, while assisting the expansion of financial services to support the public, and small- and medium-sized businesses, according to U Maung Maung Win, deputy minister for Planning and Finance.
–Translation by Swe Zin Moe