CBM lowers interest cap on loans
March 20, 2020On 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 13 and 16% respectively.
The Directive also confirms the following:
- The minimum interest rates on saving deposits, savings bonds and maturity deposits shall be 7.5% (down from 8% earlier).
- For the purpose of what counts as a ‘secured loan’, the Directive restates that collateral includes, but is not limited to, the following: land and buildings, gold, jewelry, diamonds and other precious gems, savings bonds, government treasury bonds, fixed deposits, part-time deposits, mortgageable securities and negotiable instruments, pledges, loans with credit guarantee and other loans.
Timeframe
The Directive has become effective from 16 March 2020.
KEYWORDS
RELATED EXPERIENCES
Related Articles
- New Directive Issued by the Central Bank of Myanmar on Foreign Employees in Banks
- August 9, 2021 - CBM Directive on Opening and Closing of NBFI branches and relocation of head-office
- June 23, 2021 - Cash Withdrawal Ceiling for Microfinance Institutions
- May 21, 2021 - Overview of Recent Notifications Issued by the Central Bank of Myanmar
- April 23, 2021 - The Central Bank of Myanmar Issues New Directive on Non-Banking Financial Institutions
- February 24, 2021