Foreign Debt
Individual Documents
Sub-title:
KBZ Bank is suing the owner of Myanmar Industrial Port over alleged unpaid debts of more than US$200 million, in a case that is symptomatic of the problems facing the country’s leading banks as they seek to resolve legacy non-performing loans.
Description:
"The country's largest private bank, KBZ, is taking a leading businessperson and his company to court, alleging unpaid debts in excess of US$200 million in what is believed to be Myanmar’s largest ever loan default.
KBZ has filed suits against businessman U Ko Ko Htoo and Myanmar Annawa Swan A Shin Company Limited at the Yangon Region High Court, alleging he and the company had failed to repay loans and had accumulated a total debt including interest of around K326 billion (US$221.4 million at current exchange rates).
Ko Ko Htoo is the managing director of MAS and his family holds 100 percent of the company, according to the Directorate of Investment and Company Administration. MAS owns and operates one of the country’s busiest ports, Myanmar Industrial Port in Yangon’s Ahlone Township.
In 2016, the International Finance Corporation provided a $40 million convertible loan to MAS to expand the port but the relationship later soured over corporate governance issues, according to two sources with knowledge of the deal.
The loan was envisaged as the first phase of a $200 million financing package that would also have included $160 million in long-term senior loans from the IFC and other foreign lenders, but the second phase never materialised. IFC confirmed to Frontier that it exited the project in December 2018 after MAS repaid the $40 million loan.
KBZ commenced litigation against Ko Ko Htoo and MAS in December 2019 and this month the bank began presenting evidence to support its claim. Frontier understands it is the largest such claim to be heard in a Myanmar court, and that, taken together, Ko Ko Htoo and MAS are possibly the largest private sector debtor in the Myanmar banking system.
At a January 13 hearing attended by Frontier, lawyers for KBZ alleged that Ko Ko Htoo owed the bank more than K63 billion in principal and interest as of October 30, 2019. In a separate hearing the following day they alleged that MAS had accrued debt of K262.8 billion to November 6, 2018..."
Source/publisher:
"Frontier Myanmar" (Myanmar)
Date of publication:
2020-01-22
Date of entry/update:
2020-01-24
Grouping:
Individual Documents
Category:
Foreign Debt, Banking, Industry - General articles
Language:
more
Topic:
East-West Economic Corridor, Electricity, Infrastructure, Japan, Japanese Embassy, loan agreements, ODA, Official Development Assistance, Power, rural development, sewerage, Southern Economic Corridor, Traffic, Urban Development, wastewater treatment, Water
Topic:
East-West Economic Corridor, Electricity, Infrastructure, Japan, Japanese Embassy, loan agreements, ODA, Official Development Assistance, Power, rural development, sewerage, Southern Economic Corridor, Traffic, Urban Development, wastewater treatment, Water
Description:
"Myanmar and Japan have signed four loan agreements worth about US$1.1 billion (120.915 billion yen, or 1.61 trillion kyats) to fund sewerage, urban development, power distribution and infrastructure improvement projects in seven regions and states in Myanmar.
The four Official Development Assistance (ODA) loan agreements were signed on Tuesday between Japanese Ambassador Maruyama Ichiro and U Maung Maung Win, Myanmar’s deputy minister for planning, finance and industry, with the aim of improving living standards and economic and social development in Myanmar, the Japanese Embassy in Yangon said in a statement.
About 45.9 billion yen will go towards developing Yangon’s sewerage system. The funds will be used to renovate and expand wastewater treatment plants, lay sewer pipes and improve living standards in the central business district of Yangon.
Currently, much of Yangon’s human waste and domestic and industrial wastewater flows into the Yangon River untreated, resulting in poor water quality..."
Source/publisher:
"The Irrawaddy" (Thailand)
Date of publication:
2020-01-22
Date of entry/update:
2020-01-23
Grouping:
Individual Documents
Category:
Burma's economic relations with Japan, Foreign Debt, Japan-Burma relations, Rural development in Burma/Myanmar, Urban development
Language:
more
Description:
"A loan of 100 million U.S. dollars from the World Bank International Development Association (IDA) is being sought in Myanmar's Union Parliament, parliament sources said Wednesday.
The loan is meant for the Ministry of Education to conduct inclusive access and quality education program and will be carried out in 115 townships, Minister of Education Myo Thein Gyi told the parliament on Tuesday.
He clarified that the aim of the loan is for all students in the basic education schools to have access to learning opportunities for out-of-school school-age youngsters and to strengthen financial and management ability.
The world bank loan represents part of the program's total value of 180 million U.S. dollars, while 70 million dollars was a grant from Global Partner for Education and 10 million dollars was a grant from the European Union, he said.
As part of the efforts to reduce drop-outs from schools, the out-of-school quality education will be provided to 77,000 out-of-school school-age youngsters under the four-year program, he added..."
Source/publisher:
"Xinhua" (China)
Date of publication:
2019-09-18
Date of entry/update:
2019-10-07
Grouping:
Individual Documents
Category:
Foreign Debt, Human Development, Burma/Myanmar's Foreign relations, general, Sustainable/alternative development in and for Burma
Language:
more
Description:
"Myanmar is due to receive over K703 billion in foreign aid and seek over K2,624 billion in foreign loans in 2019-2020 fiscal year that starts on October 1, according to the Joint Public Accounts Committee.
K0.167 billion in foreign aid and K0.166 billion in foreign loans are earmarked for central level organizations while K596.193 billion in foreign aid and 1,473.655 billion are for government ministries and departments.
Moreover, State-owned enterprises (inclusive within State budget) will spend K53.029 billion in foreign aid and K1,038.557 billion in foreign loans. State-owned enterprises (exclusive from State budget) will spend K3.078 billion in foreign aid and K101.383 billion in foreign loans.
The Central Bank of Myanmar is set to receive K51.217 billion in foreign aid and K11.072 billion in foreign loans.
Deputy Minister for Planning and Finance Maung Maung Win said until March 31 this year, Myanmar had a foreign loan of US$9.89 billion. Calculating in Myanmar kyat, both foreign and local loans amounted to K38,117 billion.
From 2015-2016 FY under the Thein Sein government to 2018-2019 FY under the ruling National League for Democracy government, the foreign debt amounted to K10,147 billion, bringing increased interest rates..."
Source/publisher:
"Eleven Media Group" (Myanmar)
Date of publication:
2019-09-30
Date of entry/update:
2019-10-01
Grouping:
Individual Documents
Language:
more
Sub-title:
Economic development, agriculture, electricity, and infrastructure projects will be the focus of a framework for loans between South Korea and Myanmar.
Description:
"On September 3, Union Minister for Investment and Foreign Economic Relations U Thaung Tun and South Korea’s Minister for Foreign Affairs Ms Kang Kyung-wha signed the framework agreement under which South Korea will provide US$1 billion to Myanmar for an economic development cooperation fund (EDCF) during a visit by South Korean President Moon Jae to Myanmar.
According to the Ministry of Investment and Foreign Economic Relations, nine projects are included under the loan framework. The Ministry of Agriculture, Livestock, and Irrigation is expected to receive US$57 million for upgrading state agricultural institutes conducting vocational and educational programmes, upgrading agricultural cooperative societies, promoting income generation for rural cooperatives members, and the Ayeyarwaddy Delta Area Development Programme.
The Ministry of Transport and Communication (MOTC) is expected to receive US$93 million for an e-government integrated data center project, US$45 million for a railway modernisation project, and US$700 million for the Mandalay – Myitkyina rail line project..."
Source/publisher:
"Myanmar Times"
Date of publication:
2019-09-09
Date of entry/update:
2019-09-09
Grouping:
Individual Documents
Language:
more
Sub-title:
Myanmar has accumulated US$10.2 billion in debt owed to more than 20 countries and multilateral organisations, the Joint Public Accounts Committee of the Pyidaungsu Hluttaw noted in a report on the Union budget for the 2017-18 fiscal year.
Description:
"The committee said the Ministries of Home Affairs; Agriculture, Livestock and Irrigation; Transport and Communication; Electricity and Energy and; Industry took the largest loans.
According to the report, loans rose by more than US$1 billion (K1.587 trillion), or 11.5pc, between fiscal 2016-17 and 2017-18.
Of the total loan amount as of March 2018, loans from China formed the biggest amount totaling US$4 billion. Some US$1.11 billion has been repaid.
The Export-Import Bank of China(Exim China) was the creditor for the majority of the loans taken out by the Ministries of Electricity and Energy; Defence; Industry and; Agriculture, Livestock and Irrigation.
Examples of loans from Exim China include the Ministry of Electricity and Energy’s Thout Yay Khat 2 project with Shwe Swan-in Co Ltd where the firm still owes US$5.2 million in capital and a further US$2.7 million to the ministry.
A long-planned caustic soda plan project for which Myanmar Economic Holdings Ltd (MEHL) had signed a 690-million-yuan loan with Exim China in June 2010 remains unbuilt despite 276 million yuan having been spent and MEHL having transferred the No 3 Heavy Industries Enterprise to implement the project. To-date, the government has repaid 289 million yuan in capital and interest and only expressions of interest have been invited for the project..."
Source/publisher:
"Myanmar Times"
Date of publication:
2019-08-20
Date of entry/update:
2019-08-20
Grouping:
Individual Documents
Category:
Foreign Debt, International Relations
Language:
more
Description:
"The growing budget deficit will require more domestic loans to the government over the next few years, increasing strain on local debt markets, according to experts.
While authorities are attempting to boost tax collection efforts in a bid to cut the deficit, which may grow to over 5 percent of GDP this year, it is likely that debt financing will continue to be required to meet budget needs.
The Central Bank of Myanamr restarted auctions of government bonds this year for the first time in the civilian government era, though had previously conducted debt sales.
Finance Minister U Win Shein said the ministry routinely rounds out the government budget with use of loans from domestic sources.
The government owed domestic loans worth K10.8 trillion (US$10.4 billion) as of September last year, an increase on K9.94 billion in 2011-12. Foreign debt is currently worth about $9.4 billion, according to statistics from the Ministry of Finance..."
Aye Thidar Kyaw
Source/publisher:
"Myanmar Times" (English)
Date of publication:
2015-03-23
Date of entry/update:
2015-03-23
Grouping:
Individual Documents
Category:
Foreign Debt
Language:
English
more
Description:
"This site provides the latest international data available, mainly from creditor sources, on the external debt of
developing and transition countries and territories.
The information is presented in the form of a table that is updated quarterly (last update: 31 August 2001).
The table shows: the stock of debt, with a minimum two-month lag, for the last five quarters and the previous December; and flow figures for the latest complete two years and two recent quarters.
The table is also available in PDF format (201 KB) and in a compressed executable Excel workbook (206 KB).
A background summary and metadata describe each of the 14 data series presented.
FREE access to an online database, which provides longer time series and permits manipulation of the figures.
The purpose of the site is to facilitate timely and frequent access by a broad range of users to one data set that
brings together data that are currently compiled and published by the contributing international agencies
(BIS-IMF-OECD-World Bank) on components of countries? external debt and international reserve assets. Click on
the name of any of the contributing organisations to access their Website to obtain more detailed information."
Source/publisher:
Bank for International Settlements, IMF, OECD, World Bank.
Date of publication:
2001-08-31
Date of entry/update:
2003-06-03
Grouping:
Individual Documents
Category:
Foreign Debt
Language:
English
more
Description:
On Burma?s debt burden. "Not since the days of Indonesia?s Sukarno regime in the 1960s has Southeast Asia seen such a profligate government with little capacity for rational economic management. No windfalls from either a gas pipeline or narco-dollars can bail out Burma.".
Louis Kraar of Fortune magazine
Source/publisher:
"Burma Debate", Vol.. IV, No. 2
Date of publication:
1997-06-00
Date of entry/update:
2003-06-03
Grouping:
Individual Documents
Category:
Foreign Debt
Language:
English
Format :
html
Size:
9.87 KB
Local URL:
more