Country could become Asia's rising star: IMF

Myanmar could become Asia's next economic engine if it enacts vast reforms, the IMF said, signalling the country could receive a Fund monitoring programme in 2013.

"With a commitment to strong reforms, Myanmar has the potential to vastly improve the living standards of its people and emerge as Asia's next rising star," IMF mission chief in Myanmar Meral Karasulu said in a statement.

The International Monetary Fund said the discussions pointed to the possibility of a staff-monitored programme next year that would jointly monitor progress on the government's own reform plans.

Karasulu, who wound up weeks of talks with the finance minister, central bank chief and other senior officials, said the government had made rapid strides in reforms to modernise the economy since taking over from a military junta in 2011.

"Nevertheless, the government recognises there is still a long way to go," she said.

The IMF official said Myanmar authorities had discussed reforms over the coming year that would focus on continuing to unify the foreign-exchange rate, strengthening the central bank and improving revenues to fund its development needs.

In May, the IMF published its first report on Myanmar in decades, calling on authorities to step up reforms to enhance the business and investment climate, including modernising the financial sector and liberalising trade.

Myanmar is one of the poorest countries in Asia after decades of economic mismanagement and isolation under army rule.

Meanwhile, a total of 165 micro-credit companies were reported unlicensed in Nay Pyi Taw and other divisions and states, the minister of finance and revenue said at the micro-credit business coordination meeting.

According to the Money Lenders Act (1945) and the Small Loan Enterprise Act (2011), small loans companies are required to apply for a business licence. Any business that fails to obtain the licence will be penalised, the minister said.

source: The Nation
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