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.

The Ministries of Home Affairs; Agriculture, Livestock and Irrigation; Transport and Communication; Electricity and Energy and; Industry took the largest loans. The amount of loans rose by more than US$1 billion (K1.587 trillion), or 11.5pc, between fiscal 2016-17 and 2017-18. 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; Defense; Industry and; Agriculture, Livestock and Irrigation. Meanwhile, Myanmar still owes Japan US$2.5 billion, which was drawn down from a credit line of US$6 billion. Other creditors include multilateral organisations such as Asian Development Bank, International Monetary Fund, India, Thailand and the UK.

The report pointed out that higher interest rates, a weak kyat and rising management costs had taken a toll on government finances, particularly when regular payments on the loans were still being made for businesses that have failed.

Source: Myanmar Times 

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