Sunday, August 13, 2023

Myanmar junta struggles to repay $400 million Chinese bank loan due to jump in dollar price

Mizzima

The Ministry of Cooperative under the then PM Thein Sein-led government borrowed US$400 million with a high interest rate from the Export Import Bank of China. Today, the Military Council and the cooperative societies are reportedly having difficulty in repaying thi-
[]=
The China Exim Bank lent US$400 million at a 5% interest rate per annum.

When PM Thein Sein was in power, Cooperative Minister Kyaw San borrowed US$100 million on 18 October 2013, another US$300 million in 2015 at the interest rate of 4.5% per annum. This US$400 million loan was disbursed to Central Cooperative Society under the Ministry, States/Regions Cooperative Societies and Township Cooperative Societies.

Of the US$300 million loan borrowed in 2015 the Cooperative Ministry used the US$30 million loan in buying farming machinery and equipment by installments, US$ 50 million for giving agricultural loans of 100,000-500,000 Kyat to the farmers, and US 220 million for giving loans to cooperative societies members who had never received such loans before. Most of the recipients of these loans were reportedly the people who had good rapport and connection with military, companies and cooperative societies.

No comments: