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Myanmar prepared to manage further economic fallout: DASSK
The Myanmar economy is expected to deteriorate further this year as a result of COVID-19, State Counsellor Daw Aung San Suu Kyi said during a meeting with key finance ministers on June 16.
She said any economic damage caused by the pandemic so far is likely to worsen in the coming months and that Myanmar is only just beginning to feel the economic impact of COVID-19.
“The most damage will be felt in the third and fourth quarter of the year but we would like the public to know that financial preparations to counter to fallout have already been made,” the State Counsellor told Minister of Investment and Foreign Economic Relations U Thaung Tun, Minister of Planning, Finance and Industry U Set Aung and Union of Myanmar Federation Chambers of Commerce and Industry chair U Zaw Min Win at the meeting.
In the past three months, Myanmar has received US$1.25 billion in low-interest loans from international development partners and lenders to help it respond to the economy damage caused by COVID-19.
The funds include $700 million from the International Monetary Fund, $270 million from Japan, $250 million from the World Bank and $30 million from the Asia Development Bank, U Thaung Tun said.
International organisations have so far offered to channel up to $2 billion in the form of loans and grants to the country, U Set Aung said.
The government has also rolled out its COVID-19 Economic Relief Plan (CERP), from which more than 2000 small and medium sized enterprises (SMEs) have already received low-interest loans from a K100 billion fund pulled together in March.
Up to K500 billion in additional funds has been set aside to help SMEs and other tourism and manufacturing businesses weather the pandemic. “Right now, these businesses are facing challenges from local and foreign trade limitations and cash flow problems as a result of decreasing demand. Accelerating the distribution of loans to those affected can help to boost the economic recovery,” U Zaw Min Win said.
U Set Aung said the CERP should align with the goals of the Myanmar Sustainable Development Plan over the longer term and that a separate Economic Recovery Plan to ensure the government short and long term initiatives are clear and connected is being drafted. The plan will include arrangements made for the Myanmar Project Bank and Land Bank.
The Economic Recovery Plan should promote local businesses and provide local job opportunities, including for workers who have from returned to the country after losing their jobs overseas as a result of COVID-19. It should also prioritise safety and protection for foreign investors, he said. – Translated
Source: https://www.mmtimes.com/news/myanmar-prepared-manage-further-economic-fallout-dassk.html