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Myanmar: Foreign loan criteria updated

Myanmar: Foreign loan criteria updated

The Central Bank of Myanmar revised the criteria to be satisfied before foreign loans into Myanmar can be approved.

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Previously, the foreign loan criteria stated that companies seeking approval for an offshore loan must have at least U.S. $500,000 in equity and a debt-to-equity ratio between 3:1 and 4:1.

With the updated criteria, companies with a Myanmar investment commission permit would continue to need to have U.S. $500,000 in equity capital and at least 80% of that amount would need to have been remitted to Myanmar before the loan can be approved. Other companies would only need equity of U.S. $50,000.

In addition, Myanmar investment commission companies must have a debt-to-equity ratio of 4:1 but other companies will only need to have a debt-to-equity ratio of 3:1.

The updated information is provided in the following table.

    Minimum equity amount Minimum equity ratio
Myanmar investment commission companies U.S. $500,000 (80% remitted) 4:1
Other companies U.S. $50,000 3:1


Read a March 2020 report prepared by the KPMG member firm in Myanmar

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