Myanmar to Reorganize Rules on Government Debt and Guarantees

7
Aug
2015

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Can Myanmar’s states and regions borrow money from external sources? Can they too issue Government bonds? How about state-owned enterprises? For which projects can the Government issue guarantees, and what is the role of the National Assembly and the annual Union Budget laws? A first look at Myanmar’s new draft law on the subject.

Highlights of this note:

  • Myanmar Government prepares a new law in relation to Government loans and bonds
  • Only the Minister of Finance can borrow money
  • States and regions may also borrow money but with Union Government and National Assembly approval
  • State owned enterprises may borrow money only from Myanmar state owned banks
  • The Union Government may or may not be liable for debts of SOEs depending on the case
  • The Government may issue a guarantee for a project only with National Assembly approval
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