Articles
30
Aug
2019
Myanmar Passes New Law for Land Acquisition, Resettlement and Rehabilitation
On 19 August 2019, the Union Parliament of Myanmar, Pyidaungsu Hluttaw, enacted Land Acquisition, Resettlement and Rehabilitation Law (Pyidaungsu Hluttaw Law No. 24/2019) to replace the colonial-era Land Acquisition Act (1894) as well as to provide a legal framework for resettlement and rehabilitation for the first time in Myanmar. Highlights of this note Overview What’s […]
30
Jun
2019
Power Surge at MOEE (VDB Loi Insights)
Quite an eventful week for the power sector in Myanmar with the announcement of new electricity tariff for customers, the issuance of tender documents for five rental projects as well as the appointment of a new managing director of the Electric Power Generation Enterprise (“EPGE”).
29
Jun
2019
INGOs and NGOs Providing Microfinance Services Are Required to Transform Into Corporate Entities in Myanmar
On 4 June 2019, the Financial Regulatory Department (“FRD”) issued a letter (“Letter”) directing International Non-Governmental Organizations (“INGOs”) and Non-Governmental Organizations (“NGOs”) which provide microfinance services to register as companies and apply for fresh Microfinance Business License (“MFI License”). MFI License issued previously Pursuant to the Letter, FRD had previously issued MFI Licenses to 3 […]
24
Jun
2019
MBSC’s directive on interest rates on micro-credits and savings
On 5 June 2019, the Microfinance Business Supervisory Committee issued Directive 1/2019 (the “Directive”) which revises the interest rates applicable to micro-credits and savings of the members.New rates of interest The Directive introduces an interest rate of 28% on micro-credit (the “New Rate”) and provides illustrations with regard to calculating the effective rate of interest […]
31
May
2019
Change of the Income Year in Myanmar: What Do Companies Need to be Aware of?
On 28 May 2019, the Internal Revenue Department (“IRD”) of the Ministry of Planning and Finance (“MOPF”) announced a change to the income year (formerly from 1 April to 31 March) of private and cooperative sectors (“taxpayers”) to 1 October to 30 September, effective from 1 October 2019. As a result, the taxpayers will have a […]
5
Apr
2019
2019 Myanmar Insurance Market Liberalization for Foreign Investments: First Preferred Applicants Announced
MoPF announcement The Ministry of Planning and Finance of Myanmar has just announced[1] the preferred applicants for the licenses of life insurance business in Myanmar to be operated by 100% wholly-owned subsidiaries of  foreign insurers.  The list of selected applicants included: AlA Company Limited Chubb Tempest Reinsurance Limited Dai-ichi Life Insurance Company, Limited Manufacturers Life […]
28
Feb
2019
How to Best Split a Myanmar Insurance Company in a Life and a Non-Life Corporate Entity?
Most of the insurance companies which Myanmar has licensed since the liberalization of the sector to the local, private sector in 2013 are actually composite insurance companies. Highlights of this note Life and Non-Life entities may not hold shares in each other Form one, not two new entities How to transfer the Life business to […]
6
Feb
2019
CBM allows foreign investments in Myanmar banks
Since the implementation of the new Myanmar Companies Law (“MCL”) in August, the so-called 35% rule has been subject to interpretation by each government Ministry. Slowly, we have been seeing updates from Ministries on whether they will allow 35% foreign shareholding in various sectors. On 29 January 2019, the Central Bank of Myanmar (“CBM”) issued […]
31
Jan
2019
Bank Fees Now Included in Interest Cap (VDB Loi Insights)
Following the recent directive of the Central Bank of Myanmar (the “CBM”), , interest rate caps of 13% and 16% shall apply for secured loans and unsecured loans,. The Directive provides that “the maximum interest rate … includes all other fees collectible in lump sum or in partial payments such as guarantee fees, management fees…
9
Nov
2018
Client Alert: Foreign Bank Branches Permitted to Extend Banking Services to Local Companies in Myanmar
In an exciting development, the Central Bank of Myanmar (the “CBM”) on 8 November 2018 issued Directive No. 6/2018 (the “Directive”) which grants permission to foreign bank branches to extend banking services to local companies wholly owned by Myanmar nationals. As the reader may already be aware, there are 13 foreign bank branches operating in […]
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