The Central Bank of Myanmar (CBM) now allows foreign banks to provide export financing and related banking services for domestic exporters

Central Bank of My­anmar (CBM) is now allowing for­eign banks to provide export financing and re­lated banking services for domestic exporters, according to its directives released on December 8.

The foreign banks which want to provide services must obtain a permit from CBM.

‘‘Not having steady money flow is one of the reasons Myanmar's econ­omy is slow. The change, in my opinion, is a posi­tive step. At the moment, the services are allowed only for exporters, but in the future, it should also be allowed for import­ers,’’ U Myo Thet, Vice President of Union of Myanmar Federation and Chambers of Commerce and Industry, said.

“The interest rates for the export financing has not been set yet,” U Pe Myint, advisor of CB Bank, said. He added, "The number of foreign banks, where exporters can get export financing services if they are eligible to the categories is now set at 13, this adds more options, he noted.”

CBM granted all of 13 foreign banks licenses in 2015 and 2016, providing full-scale banking servic­es to domestic companies in collaboration with local and international banks and financial institutions.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/cbm-allows-foreign-banks-provide-export-financing )

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