CBM
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 […]
29
Jan
2019
Financing a Myanmar-based Internet Service Provider
The market for Internet Service Providers (“ISP”) in Myanmar is stabilizing. Refinancing strategies, retooling and opportunities for expansion are fueling the need for new cash. Foreign financing remains one of the most obvious ways for ISPs to attract new funding. Highlights Official Approvals for a New Foreign Loan Regulatory Regime of an ISP Due Diligence […]
29
Jan
2019
Bank Fees Now Included in Interest Cap
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 […]
31
Jul
2018
New Rules on Sanitizing Bank Overdrafts in Effects
In July 2017 the Central Bank of Myanmar (“CBM”) introduced a fresh set of four regulations (Notifications 16-19/2017 pertaining to capital adequacy, asset classification and provisioning, large exposures and liquidity ratio requirement respectively). Issued under the Financial Institutions Law 2016 (“Financial Institutions Law 2016”), for the most part these were reinforcements of the existing regulations […]
31
May
2018
PTD Draft Directive on Tariffs for Telecom Licensees (VDB Loi Insights This Month)
      HIGHLIGHT OF THIS MONTH From our Telecommunications, Media and Technology Team PTD Draft Directive on Tariffs for Telecom Licensees Telecom licensees in Myanmar have an obligation under their license to seek and obtain PTD approval for tariffs prior to launch of the relevant telecom services, pursuant to section 29 of the Telecommunications […]
24
May
2018
CBM announcement – Credit bureau
Per announcement from CBM dated 17 May 2018: “The Central Bank of Myanmar has issued a business license to Myanmar Credit Bureau Limited on 17 May 2018 to establish a credit bureau in the Republic of the Union of Myanmar. Myanmar Credit Bureau Limited may collect information regarding the repayment capacity and other related information […]
27
Sep
2017
Myanmar Kyat or US Dollar for Power Purchase Agreements: Will the Government Insist on Myanmar Kyat Tariffs?
One of the many challenges facing private investors in public infrastructure in Myanmar is, increasingly, the currency issue. The Myanmar Kyat (MMK) has been in a slow but steady decline against the US$ since 2014. Highlights More pressure to accept MMK tariffs Tariff entirely in MMK Tariff in US$ but payable in MMK Tariff in […]
31
May
2017
Applying for an MIC Permit under Myanmar’s New Investment Rules
A fairly big portion of new investment projects in Myanmar will no longer receive an actual MIC Permit in accordance with the old, often time consuming procedure. Instead, there is the lighter “Endorsement” procedure for those who need land approvals or who qualify for tax incentives.
27
Oct
2015
The Central Bank of Myanmar Cancels Foreign Exchange Licenses. But Not Really.
The cancellation of the “Foreign Acceptor and Holder Licenses” by the Central Bank has resulted in a deluge of questions by concerned businesses. Actually the impact on mainstream foreign investors is rather limited. Nevertheless, this episode shows the need for a comprehensive and clear regulation on the compulsory use of Myanmar Kyat in domestic transactions. […]
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