Monday, 24 March 2014

Myanmar still more than US$ 9.5 million in debt to foreign aid organisations

As of December last year , Myanmar still needed to pay off more than US$ 9.59 billion (Ks 9.22 trillion) to three international funding organisations and 16 countries, the deputy finance minister told a parliamentary session in Nay Pyi Taw on Thursday (March 20).

Aung Linn was responding to a question raised by Kayah State MP Kyaw Khine Win (Maisal) concerning the state budget and the country’s financial situation.

The dept amount is according to calculations of the International Monetary Fund for last year, Aung Linn explained. He added that the debt amount is based on the exchange rate, which varies over time. He also said that the figures may have changed due to interest, dept capital, and the fact the loan figures were calculated before the financial closing date.

Among Myanmar’s debts to other countries, the largest is to China, at US$ 4 billion, followed by Japan at more than US$ 1.9 billion.

“We are taking loans from 16 countries and three international funding organisations to repay the remaining balance of both interest and capital under the agreements. As an exception, we are working together with The Paris Club to reschedule the period for elimination of debt to Canadian. The process started at the beginning of this year,” the deputy minister said.

MP Kyaw Khine Win noted that the deputy finance minister did not clarify when the loans were taken but only that they started under the previous and successive government.

“Does that mean it happened under State Law and Order Restoration Council? It is not known when they started. Most likely they started after 1988. But we haven’t been told the exact time,” said Kyaw Khine Win.

source: Eleven Myanmar
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