CBM clarifies matters concerning repayment schedule
The Central Bank of Myanmar(CBM) on 13th July issued an announcement according to the Sections 29(A), 38 (D)and 42 of the Foreign Currency Management Act and Article 48 of the Foreign Currency Management Regulations.
This announcement calls for suspension of the Repayment of Foreign Loans on the part of the domestic companies and organizations be the Loans are in the form of cash and kind. Repayment of both the principal and interest shall be suspended until further notice by CBM.
The entrepreneurs who have secured foreign loans are exerting their utmost effort for their business recovery during the post Covid period. Yet they are being faced with instability of the money market and unavailability of labor supply.
This is the reason why CBM has relaxed the rules of Repayment of Foreign Loans to enable them to be resilient enough. Obviously, they are overburdened with foreign debts. This being so, the CBM has suspended repayment of foreign loans for a certain period. Nevertheless, the Repayment Schedule can be restructured with both entering into an agreement through negotiation in accord with loan restructuring procesures.
Therefore, I see no reason of yielding the negative impacts on the currency exchange rate and also on the prices of commodities, said the CBM official to assure the people against the disinformation and baseless rumours.