Loan
20
Mar
2020
CBM lowers interest cap on loans
On 12 March 2020, the Central Bank of Myanmar (“CBM”) issued Directive 1/2020 (the “Directive”) and reduced the maximum interest rates on secured and unsecured loans to 12.5% and 15.5% respectively.This marks a small deviation from Directive 1/2019, issued by CBM last year, when it announced maximum interest rates on secured and unsecured loans of […]
22
Jan
2020
Central Bank of Myanmar updates and clarifies criteria for offshore loans
The Central Bank of Myanmar (“CBM”) has recently made changes to the offshore loan criteria that it has published on its website (see https://www.cbm.gov.mm/content/2066). Clearer wording has been added in terms of the differences in requirements for companies holding permits from the Myanmar Investment Commission (“MIC”) and non-MIC companies. Further updates have been made to […]
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 […]
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
Aug
2017
Client Alert: Water supply project opportunity in Myanmar
One of Myanmar’s larger cities plans to implement a water supply project serving approximately 150,000 residents. Based on a feasibility study which was carried out, the project would have to comprise several treatment facilities and more than a dozen elevated tanks. The necessary land for each one of the facilities has been earmarked by the […]
17
Jan
2017
Foreign Lending and Security in Myanmar: Overview and the Latest Updates
Slowly but surely, experience is building up with respect to project finance and international corporate finance for companies and projects in Myanmar. With the many different deals that we have completed, we prepared a quick overview of the key things to know. We also touch upon some of the remaining hot issues. Highlights of this […]
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