Sector: Banking and Finance

April 23, 2021

Below is a brief summary of some of the recent directives and instructions issued by the Central Bank of Myanmar (“CBM”). Minimum Reserve Requirement for banks The CBM issued Directive 2/2021 on 16 February 2021 allowing banks to continue maintaining minimum reserve requirement at 3.5% (of the total MMK deposits made by customers) till 30 […]

April 20, 2021

On the night of 14 April, the Cambodian Government ordered a number of restrictions in response to the recent rise in COVID-19 infections by means of Decision nr. 49 SR dated 14 April 2021 (“Decision 49“). The regulation was follow up by an amendment providing some additional details by Decision nr. 50 dated 17 April […]

April 15, 2021

In accordance with the recent Government directed business closures and stay-at-home orders, we would like to inform you as follows: VDB Loi in Phnom Penh will continue to operate, with the help of our cloud technology, through online processes and work-from-home.  Tax filings and government filings will continue insofar these are possible by distance/online. Tax […]

March 30, 2021

With the current drastic increase in the number of COVID-19 infections in Cambodia and to help prevent the spread of contagious diseases, the Royal Government of the Kingdom of Cambodia enacted the Law on Measures to Prevent COVID-19 and Other Fatal and Harmful Diseases on 11 March 2021 (the “COVID Law”) and Sub-Decree No. 37 […]

February 24, 2021

The Central Bank of Myanmar (“CBM”) published Directive 1/2021 that came into effect from 26 January 2021. This directive pertains to the establishment, operation and conduct of business by Non-Banking Financial Institutions (the “NBFIs”). In this article we have covered some of the important aspects of this directive. NBFI Registration Certificate Companies willing to engage […]

January 29, 2021

一个国家的立法框架在监管和实施担保交易方面的效力显著影响了国内市场的信贷可及性,这是推动经济增长的重要因素。近几年,老挝人民民主共和国政府对其法律制度进行了几处修改,以促进贸易和投资增长,并提高该国的业务效率和便利性。今年发生的重大变化之一是颁布了日期为2018年12月6日的第55 / NA号民法典(以下简称“民法典”),这是一部旨在涵盖大多数“民事”交易和事项的法律体系,包括有关在老挝人民民主共和国建立和完善担保权益的规定。民法典于2020年5月生效,其中的第七部分(第510至564条)取代了2005年5月20日第06 / NA号担保交易法(“担保法”)的大部分规定。 本文总结了老挝人民民主共和国在担保交易方面的立法框架的一些关键变化,以及它们可能对老挝人民民主共和国的信贷获取和经商便利性产生的影响。 安全性的创造与完美 与《安全法》不同,根据资产的性质对安全类型进行了分类,民法典基于安全性的创建方式对安全性类型进行了分类。 由 誓约 – 《民法典》允许债权人通过占有(动产或不动产)资产或赋予对动产所有权的所有权文件,对(i)有形资产建立担保。以及(ii)无形资产,如应收账款,转让可转让票报,股份和知识产权,方法是拥有赋予该无形资产所有权或使用权的文件。 没有注册要求以完善对动产的誓约。无论如何,必须通过向自然资源和环境部下属的土地注册机构注册来完善对不动产的誓约。 由 抵押 – 《民法典》允许通过向有关登记机构进行登记来对动产和不动产建立非占有性证券。可通过以下位置的在线安全性注册表完成对动产的安全性注册: 在抵押的情况下,对于完善担保没有额外的要求。 由担保 – 有关个人担保的规定与《安全法》相同。如果债务人无法支付或履行其义务,则第三方可以保证代表债务人履行义务。通过担保创建或完善证券没有注册要求。 担保物优先权规则 一般而言,《安全法》仅规定债权人的优先权并且对第三方的竞争利益保持沉默 和 其他债权人对有担保债权人的权利。现在,《民法典》提供了有关某些特定交易中担保资产竞争利益的规则。 买方和承租人的权利或与债权人权利有关的抵押的被许可人 《民法典》第514条规定在交易时诚实地按照市场惯例行事并且不了解债权人(创造和/或完善的)债权人对该资产的担保权益的资产的买方和承租人将不承担任何债务责任 或义务。根据我们的理解,上述规定是安全优先级一般规则(先申请或先完善的规则)的例外之一,并在日常业务中保护抵押资产的买受人或承租人的权利。 反对有担保债权人的索赔。 相对债权人的抵押品购货款利益和其他债权人的担保权益 根据《民法典》第515条,为购买资产提供资金的债权人将自动享有对该资产的优先权,而不是其他债权人的担保权益。无论如何,如果债权人在债务人收到资产占有之日起十日内未通过注册完善担保,则该自动优先权将不复存在。 债权人的优先权多重担保在单个抵押品 《民法典》第523条规定了债务人将一项资产担保给多个债权人的必要条件。第524条规定了有担保债权人的最完善的规则,要求有担保债权人首先在抵押品(动产或不动产)中注册其担保权益,以优先于其他有担保债权人,除了动产抵押,因此,通过占有(抵押)或通过注册(担保)创建担保的第一债权人将比其他债权人享有优先权。 除上述规定外,《民法》还规定了有关与牲畜和耕地安全有关的优先权的具体规定。 备注 尽管《民法》在安全创建和完善程序方面提供了一些清晰度,它没有提供一套全面的规则来充分处理现代担保交易的所有方面,与国际最佳做法和《贸易法委员会担保交易示范法》形成对照,2016年,详尽处理所有类型的有形和无形动产的担保权益。当前的立法未在多个方面提供具体规则,例如可以通过合同安排施加哪些限制,判决债权人相对于有担保债权人的权利的处理,有关跨境担保的规定,等等 《民法典》指出,仅《安全法》的某些规定已被取代,这意味着《安全法》中与《民法典》相抵触的规定将继续有效。另外,2011年6月20日第178 / PM号担保交易实施法令很可能,它根据《安全法》提供了有关安全和执行性能的准则,还将继续有效,因为目前,老挝政府尚未发布任何单独的实施指南。 有关老挝人民民主共和国担保交易框架的更多信息,或其他有关老挝人民民主共和国获得金融服务的查询,请联系VDB Loi老挝办事处:Daodeuane Duangdara ([email protected]), Sornpheth Douangdy ([email protected]), or Sibasish Mohapatra ([email protected]).  

January 27, 2021

The microfinance regulators in Myanmar namely the Financial Regulatory Authority (“FRD”) and its Microfinance Business Supervisory Committee (“MBSC”) had issued several directives and instructions in 2020, many of which were aimed at regulating microfinance businesses as well as supporting borrowers of micro-credit who had been affected by the pandemic. Highlights of this note Lending to […]

January 4, 2021

On 1 December 2020, Cambodia’s public utility the Electricité du Cambodge (“EDC”) launched a tender for the second phase of its National Solar Park project. The first phase, 60MW, had been won by Prime Road Alternative of Thailand after a competitive tender in 2019. Highlights of this note Prime Road is the one to watch, […]

December 29, 2020

The Central Bank of Myanmar (“CBM”) has published a number of directives in the year 2020 many of which are aimed at supporting the banking sector in an economy that is going through complexities triggered by the pandemic. We have produced below brief summaries of each of those directives as part of our yearly roundup […]

December 4, 2020

Clients have been often raising queries relating to the process and actions required to arrange for a travel to Myanmar by an expatriate employee. There are many cases when people have been outside of Myanmar since the beginning of 2020. For many, their previously issued Myanmar visas are about to expire. Although modern technology allows […]

November 30, 2020

The efficacy of a country’s legislative framework in regulating and implementing secured transactions significantly influences credit accessibility in the domestic market, an essential factor in driving economic growth. In recent years, the government of the Lao PDR has made several changes to its legal regime to facilitate trade and investment growth and increase the efficiency […]

November 29, 2020

In response to several COVID incidents linked to international travel and foreign diplomats, the Cambodian Ministry of Health is sharpening the measures applicable to most international travelers arriving in the country.

September 22, 2020

Introduction   The banking system in Cambodia includes commercial banks, specialized banks, microfinance institutions (“MFIs”), rural credit institutions, financial leasing companies, third-party processors, credit bureaus, representative offices, payment service providers, and money changers. Of these entities, commercial banks play a crucial role in providing financial services to the general public and businesses, ensuring economic and social stability, and the sustainable growth of the economy. As of this writing, there are 51 licensed commercial banks in Cambodia; […]

August 31, 2020

Employers should be aware that 2021 labor compliance deadlines are approaching. The period to apply to the Ministry of Labor and Vocational Training (“MLVT”) for the 2021 quota approval for foreign employees is now open and runs from 1 September 2020 to 30 November 2020. Applications for work permit renewals for 2021 are to be […]

August 27, 2020

Today sees the entry into force of the new Law on Land No. 70/NA dated 21 June 2019 (the “2019 Land Law”), which among other things, includes new provisions concerning the limited ownership of land-use rights by foreigners under certain circumstances, and the limited ownership of individual units in a condominium or apartment building. This […]

August 25, 2020

The Law on Insurance (amended) No. 78/NA dated 29 November 2019, (the “Amended Insurance Law”) came into effect on 14 April 2020, after it was promulgated by the President of the Lao PDR on 10 January 2020 and published in the Official Gazette on 30 March 2020. The Amended Insurance Law has effectuated several major […]

July 30, 2020

The Corona Pandemic hits Myanmar nearly at the same time as the new Insolvency Law 2020 (“the IL” was enacted on 14 February 2020). We all hope that the damage to the Myanmar economy will be as limited as possible, but it does not hurt to prepare for tough times ahead. Highlights of this note […]

July 29, 2020

On 9 July 2020, the Central Bank of Myanmar (“CBM”) published Instruction no. 3/2020 (the “Instruction”), introducing new principles for regulating the non-bank financial institution (“NBFI”) sector. The Instruction has also been circulated to all NBFIs. The new rules seem to align the NBFI sector with the banking sector, including obligations for NBFIs to: Specify […]

May 28, 2020

On 20 May 2020, Cambodia’s State Secretariat of Civil Aviation issued new rules for international travelers arriving in Cambodia. The new regulation addresses the problem of Cambodian and overseas nationals coming (back) to the country during the pandemic. A Cambodian national who returned from the Philippines that very same day was discovered to have COVID-19. […]

May 8, 2020

The evolving pandemic has substantial implications on all sectors and forms of business. In this report VDB Loi banking and finance experts are looking in particular detail into possible impact on lending transactions taking into account the local practices and regulatory regime in several jurisdictions in Southeast Asia. There has been quite a surge in […]