The state-owned Myanmar Economic
Bank (MEB) has been operating at a loss for over 20 years, according to
a report from the Union Auditor General’s Office read during a
parliamentary session on Thursday.
The report was read out by Thurein Zaw,
vice-chairman of the Public Accounts Joint Committee and details the
findings of the Union Auditor General’s Office on state budgets and
accounts for the 2011-2012 fiscal year.
MEB sits under the Ministry of Finance
and Revenue and has not turned a profit in 22 years and has been
operating at a loss since 1990. The bank spent 79.168 billion kyats of
the state budget in the 2011-2012 financial year to cover for it's
losses according to the report.
The report said that the MEB suffered
losses as it disburses loans with very low interest rates for projects
related to state policies. It says that the bank needs to operate on a
commercial scale in competition with the private banks. For ensuring
transparency, a policy bank should be established in Myanmar, the Public
Accounts Joint Committee said in the report.
source: Eleven Myanmar
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