On 4 June 2019, the Financial Regulatory Department (“FRD”) issued a letter (“Letter”) directing International Non-Governmental Organizations (“INGOs”) and Non-Governmental Organizations (“NGOs”) which provide microfinance services to register as companies and apply for fresh Microfinance Business License (“MFI License”). MFI License issued previously Pursuant to the Letter, FRD had previously issued MFI Licenses to 3 […]

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 […]

The Central Bank of Myanmar (the “CBM”), by an announcement on 3 May 2019, noted that it does not recognize digital currencies as legal tender in Myanmar (the “Announcement”). The CBM further stated that any persons that engage in transactions involving digital currencies act at their own risk.  The Announcement, which is cautionary in nature, […]

With the recent celebration of our seventh anniversary as well as the upcoming Thingyan Festival in Myanmar, we at VDB Loi would like to thank you for your continued support. We are very pleased to share with you some of VDB Loi’s best moments and achievements over the past year. We are delighted to report […]

The Central Bank of Myanmar (the “CBM”) recently published several directives relating to corporate governance aspects of banks’ operation. Highlights of this note 1. Directive on Fit and Proper Criteria2. Directive on Directors of Bank3. Directive on Related Parties

Most of the insurance companies which Myanmar has licensed since the liberalization of the sector to the local, private sector in 2013 are actually composite insurance companies. Highlights of this note Life and Non-Life entities may not hold shares in each other Form one, not two new entities How to transfer the Life business to […]

VDB Loi contributed to the 2019 edition of the Project Finance Market Intelligencepublication by Getting the Deal Through. VDB Loi team prepared a regional project finance overview for Southeast Asia. Please download the pdf version below.

MoPF announcement The Ministry of Planning and Finance of Myanmar has just announced[1] the preferred applicants for the licenses of life insurance business in Myanmar to be operated by 100% wholly-owned subsidiaries of  foreign insurers.  The list of selected applicants included: AlA Company Limited Chubb Tempest Reinsurance Limited Dai-ichi Life Insurance Company, Limited Manufacturers Life Insurance […]

According to the recent Directorate of Investment and Company Administration (“DICA”) announcement issued on 8th March 2019, companies who missed the 31 January deadline now have until March 30 to re-register. However, any companies who fail to re-register by this new deadline will be struck off from the registry, and will not be able to carry on business […]

We are trusted legal advisers for many of the region’s most active lenders, whether international financial institutions or development financial institutions, commercial lenders or non-bank financial institutions. International financial institutions have chosen us for several of their largest-ever financing transactions in our markets. To corporate borrowers and lenders alike, we are known for our pragmatism […]

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 […]

According to a previous notice of the Ministry of Commerce (“MOC”) dated 22 December 2017, all corporate entities were required to complete their online re-registration with the MOC by 31 December 2018. Recently, the MOC issued another notice, No. 0384, dated 30 January 2019, regarding further extension of the online re-registration deadline to 31 December […]

Financing and tax 2018 saw several changes to the tax regulations. The application of transfer pricing rules in Cambodia is now a reality. Starting from 2018, companies have to comply with the regulations issued in October 2017, which adopt the arm’s length principle in accordance with the OECD’s guidelines. The regulations left many questions unanswered, […]

Looking back, it is evident that 2018 has seen a lot of changes in the Myanmar legal framework. There is also a number of developments that can be expected in the near future. Banking regulations Until early November, foreign bank branches could only provide banking services to foreign companies, i.e., companies incorporated in Myanmar with […]

RfP for licenses to carry on life insurance business in Myanmar as 100% foreign company As reported earlier by VDB Loi, (read here: http://www.vdb-loi.com/mlw/myanmar-opens-up-insurance-sector-to-foreign-investors/) when a foreign life insurer wishes to obtain an individual license in Myanmar, it is required to submit a proposal in response to a Request for Proposal (the “RfP”), issued on 18 […]

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 etc. […]

In another exciting development in the Myanmar financial regulatory landscape, foreign life and non-life insurers can form joint ventures with local life and non-life insurers respectively. In addition, up to 3 (three) licenses will be granted to foreign life insurers to operate as wholly-owned subsidiaries. Therefore, foreign insurers will now play a much more active […]

Further to the amendment in 2018 of the Labor Law and Prakas 443 on seniority payment, which is applicable to all existing unlimited duration contracts (for more details, please see our Cambodia legal update here), the Ministry of Labor and Vocational Training (“MLVT”), through its information declaration on seniority payments dated 28 December 2018, has provided […]

As of late last week, online registration of mortgages and charges on the new electronic companies’ registry system, Myanmar Companies Online (“MyCO”) has become operational. This is achieved using the prescribed ‘Form H’ to comply with the statutory requirements under Section 229 of the Myanmar Companies Law 2017 (“MCL”), whereby Myanmar companies are required to […]

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 […]