World Bank has signed a zero-interest $200 credit deal with Myanmar for Myanmar’s fiscal resilience reforms

The World Bank has signed a zero-interest $200m credit with Myanmar to help with programmes that include better public debt management, increased tax collection and stronger public finance management.

Myanmar’s first ‘macroeconomic stability and fiscal resilience development policy operation’ is aimed at accelerating economic changes needed for long-term peace and prosperity.  

Under the reforms contained in the policy, Myanmar will seek to promote prudent public debt management, improve the fiscal discipline of state economic enterprises and achieve more effective budgeting processes.  

Reforms under its fiscal resilience pillar aim to increase tax collection, improve management of gas revenues and strengthen public finance management.

World Bank country director Ellen Goldstein said: “This first budget support will help Myanmar modernise economic management and build a more effective state. 

“This includes measures to maintain economic stability, which is essential for high levels of investment, inclusive growth and job creation, as well as fiscal measures that will allow for the expansion and improvement of public service delivery.”

The credit was signed by Goldstein and Daw Nwe Nwe Win, director general of treasury department, at Myanmar’s Ministry of Planning and Finance.

It came from the International Development Association, the bank’s fund for low income countries and is repayable over 38 years.

(Public Finance International: http://www.publicfinanceinternational.org/news/2017/08/world-bank-funds-myanmars-fiscal-resilience-reforms )

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