Junta puts pressure on businessmen to repay interest on COVID-19 loan

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Mawlamyine, November (6)

The Military Council announced on November 4 that only if the interests of the COVID-19 loans granted by the state under the National League for Democracy (NLD) in 2020 are repaid on the due date, the loan payment suspension period will be extended for another year.

The authorities extended the repayment period of state loans by six months for the first time on 17 March 2021, and another six-month loan repayment moratorium on September 11, 2021, for a total of one year.

According to the military council, businesses are still being affected by the COVID-19 pandemic, so it was agreed for a one-year extension of the COVID-19 loan repayment to begin on its due date in order to facilitate the financial flows of local enterprises.

However, the companies/industries that received the COVID-19 loan are required to repay the first interest for the first year and the second interest for the second year on the due dates to get a 1-year grace period.

A salt farmer who received a COVID-19 loan said it was challenging since he had to borrow money from outside sources at higher interest rates in order to repay the interest on due date.

In the notices of the Working Committee to Address the Impact of Coronavirus Disease 2019 (COVID-19) on Loans, it is said that those who fail to repay the loan will face action under the law.

The authorities warned the companies and industries that obtained loans from the Myanma Economic Bank to repay the capital and interest within a period of extension, or face legal action under the terms and conditions of the loan contract.

An entrepreneur from the hotel industry said that the issue of repaying the interest on the loan is difficult for some businessmen, and they are preparing to repay the previous interest to get another year of loan suspension.

The Working Committee to Address the Impact of Coronavirus Disease 2019 (COVID-19) disbursed some loan from the K 200 billion COVID-19 Fund to 5,990 companies and industries on April 9, 2020 under the NLD administration.

The authorities granted Ks 158 billion CMP to hotels and tourism; small and medium-scale enterprises; agriculture, livestock breeding, and marine production; export products manufacturing industries; and import substitute product manufacturing industries, as well as businesses that participate in the supply chain from local production to the export sector; foodstuffs manufacturing industries ; overseas employment agencies; and vocational training schools for a one year period at a one percent interest rate.

News – Than Lwin Times

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