The COVID-19 Economic Relief Plan (CERP), released on April 27, provides relief to the private sector through low-interest loans of up to K500 billion and credit guarantee schemes.

The government had received confirmation from its developments partners to support hundreds of millions of dollars in development assistance needed to implement the CERP, according to U Set Aung, Deputy Minister for Ministry of Planning, Finance and Industry on a Facebook update last week.

So far, the World Bank has approved a US$50 million financing scheme for the Myanmar COVID-19 Emergency Response Project as part of global emergency support operations through a dedicated fast-track COVID-19 facility. Also, the World Bank announced that it is deploying up to $160 billion in financial support over the next 15 months to help countries protect the poor and vulnerable, support businesses, and bolster economic recovery.

The authorities have also been considering IMF financing options, U Kyaw Kyaw Maung, governor of the Central Bank of Myanmar (CBM), said during a teleconference with members of ASEAN on April 24.

He said there is a possibility that the Myanmar economy could slip into recession as consequence of the pandemic and that restrictions on financial policies have been eased to alleviate the impact, including a 3 percent cut in bank interest rates to 5pc.

To mitigate against a longer term slowdown, U Kyaw Kyaw Maung said the CBM is preparing applications for the IMF’s Rapid Credit Facility and Rapid Financing Instrument and that the country hopes to receive a positive outcome from the IMF.

In the meantime, aid has come from the west. Denmark on May 6 confirmed its support to two local garment manufacturers in their attempt to reorganise their factory facilities for the production of personal protection equipment (PPE) such as medical grade masks and isolation gowns, by placing orders worth of K200 million.

“We want to support the production of PPE to fight COVID-19, but also ensure the employment of workers, who are at the risk at losing their jobs,” said Danish Ambassador to Myanmar John Nielsen.

The garment sector has been one of the more serious economic causalities of COVID-19 due to the lack of raw material as a result of the lockdown in China in February and March, followed by the social distancing requirements in Myanmar and a drop in exports from Europe.

Last month, the European Union (EU) said it would provide €5 million (K7.9 billion) in cash to support garment workers in Myanmar who have been affected by COVID-19.

The Myan Ku (Quick Assistance) emergency cash fund will go directly to cut, make, pack workers who have lost their jobs as a result of COVID-19

Around 80pc of the funds will be used to support at least 30,000 to 80,000 workers laid off and driven out of their residences. They will receive K 75,000 per month for April, May and June.

the remaining funds, 10 pc will be used to support 3,000 to 8,000 people who were illegally terminated.

Source: https://www.mmtimes.com/news/myanmar-negotiates-funds-rescue-embattled-economy.html