Mawlamyine, July (16)
The Central Bank of the military council instructed local entrepreneurs to suspend the interest and principal payment of loans borrowed from abroad, and businesses may be blacklisted, business analysts told Than Lwin Times.
The regime’s central bank said on July 13 that businesses should not pay back the interest and principal of loans obtained from abroad, either in cash or assets, in recent periods. Licensed banks should help coordinate between lenders and borrowers.
A business analyst said if the foreign loans are not repaid at the specified time, the company may be blacklisted and not be able to get new loans.
The military council’s directive to suspend the repayment period of external loans is to control foreign currency because the balance of domestic and foreign currency at the central bank is low.
Due to the suspension of repayment of external loans, economic analysts say that, in the long run, domestic businesses that have taken loans may end up with a mountain of interest.
However, due to the lack of foreign currency, the military council forced the entrepreneurs to trade in dollars and announced that future exports would be permitted only if the traders presented the previous bank receipt.
News – Than Lwin Times