Ministry of Commerce plans to set up an export-import bank to help boost the country’s overseas business activities

The Commerce Ministry is planning to set up a bank capable of assisting exporters and importers to help boost the country’s overseas business activities.

Aung Htoo, Deputy Minister for Commerce, said: “We want to establish the bank for export and import. The bank can guarantee losses of exporters and importers. The bank can help until the payment is made. We want to promote exports. Financial assistance can also be supported.”

Negotiations are ongoing whether a separate bank will be set up or an existing bank will be upgraded.

At present, pulses and beans can be exported with the help of Myanma Economic Bank.

“We are thinking of using an existing bank if a new bank cannot be set up separately,” Aung Htoo said. “We have not discussed this with local bankers yet in order to render assistance to  exporters.”

He added: “Interest rates of local banks remain a bit higher. The bank interest rate is 13 per cent. The interest rate of neighbouring countries is 2 per cent to 3 per cent. They have a two-step loan system. If we add a service charge, it will be about 8 per cent. It is cheaper than the local interest rate of 13 per cent. Therefore, we need to test them.”

In the export sector, marine trade reached more than $1.3 billion. Border trade reached $638 million. Total export volume reached more than $1.9 billion up to June 2 for the 2017-2016 fiscal year, according to official data from the Ministry of Commerce.   

In the import sector, marine trade reached $2.6 billion. Border trade reached $467 million. The total import volume reached more than $3.1 billion, according to the ministry.  

(Eleven Media Group: http://elevenmyanmar.com/business/10046 )

​