Foreign loans into Myanmar
The Central Bank of Myanmar (“CBM”) has recently posted an undated notification in relation to the processes for obtaining the CBM’s approval for offshore loans / loans from abroad.
The notification sets out the documentation that needs to be submitted as part of the application and the areas which will be scrutinized by the CBM as part of the approval process submitted via either the Myanmar Investment Commission or directly to the CBM.
The notification points out a maximum debt to equity ratio of either 3:1 or 4:1 without further elaboration on the circumstances upon which each of the ratios would be applicable. As such, investors will need to take this into account whilst considering undertaking new loans into Myanmar.
KPMG can provide advice on areas of concern for investors as well as how best to approach the above application. Thereafter, KPMG will also be able to assist in the actual submission of the application itself to help clients manage the overall process.
About Client Alerts
KPMG Client Alerts highlight the latest tax and regulatory developments, impending change to law or regulations, current practices and potential problem areas that may impact your company. As certain issues discussed herein are time sensitive, it is advisable to make your plans accordingly.
“Client Alert” is issued exclusively for the information of clients and staff of KPMG Advisory (Myanmar) Ltd and should not be used or relied upon as a substitute for detailed advice on the basis for formulating business decisions.
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