Non-performing Loans (NPLs) at the three state-owned banks exceed K 260 billion

The combined non-performing loans (NPLs) at three state-owned banks have exceeded K260 billion, according to Union Auditor General’s report for the six months between April and September 2018.

The report showed that NPLs at Myanmar Economic Bank (MEB), Myanmar Agricultural Development Bank (MADB) and Myanmar Investment and Commercial Bank (MICB) totaled K 262.9 billion.

Around half the NPLs - K133.7 billion - were from MEB, representing around 6pc of the bank’s loan book. NPLs represented more than 9pc of MADB’s loan book and 8pc of MICB’s loan book. 

Among those which have not paid back their loans to MEB are Myanmar Fisheries International Joint Venture, a French and local JV which borrowed money to develop an international fish auction market. The outstanding loan as at October 2019 was K3.9 billion. The company is trying to raise a further K20 million. 

While MICB mainly extends short term loans, some of its NPLs date back for years. Due to deteriorating value of the collaterals, many of these debts should be settled as soon as possible, the Auditor General said.

The bulk of MADB’s outstanding loans were taken to cover crop losses owing to natural disasters, falling crop prices, flaws in group insurance and loans as well as problems in collecting repayments in unstable areas. – Translated

(The Myanmar Times: https://www.mmtimes.com/news/npls-three-state-owned-banks-exceed-k260-billion.html )

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