Sunday, 16 December 2012

Fluctuating currency exchange takes a toll on livestock, fisheries sectors

Unstable currency exchange rates have led to the losses in the livestock and fisheries sectors, as a result business owners are finding it difficult to repay debts to banks.

“Due to the turbulence in currency exchange rate which has led to capital loss, they have deferred repayment of debts owed to the Ministry of Livestock-Fisheries,” Than Lwin, chairperson of Myanmar Fisheries Federation said on December 11, during the meeting of federation.


He said that prices as well as volume of fishery product exports have been stable over the past two years. Local consumption also has been stable. But a 10 per cent tax on exports has led to a loss of 500 kyats per vice (US$ 0.6 per 1.63kg.) It was a big loss for the fishery industry.

The state is still owed thirty-five billion Kyats by 154 fisheries business owners. Parliament has ordered the government to recover the debts by the end of 2013.

According to Than Lwin, the fishery sector is generally not doing well. The businesspersons will definitely settle their debts in any way. Using their tangible resources and experiences, they will try to repay debts. But unless we help them, they will stagnate and fail, he said.

The Lending Ministry of the Livestock-Fisheries Bank and others, and fisheries businesses are facing one-third capital loss because of currency exchange fluctutations.

Win Kyaing, secretary of Myanmar Fisheries Federation said that  the debts owed to private banks is unknown, and private banks confiscate fish farms to get back their money.
 
source: Eleven Myanmar

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