close
Share with your friends

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.

1000

Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal