The decision was made on May 14, during a meeting between Mr Kim Yu-Shin, director of EDCF’s Operations Department, and U Thant Sin, Myanmar ambassador to the Republic of Korea.

The loan term is 40 years and the interest rate is from 0pc to 0.01pc. The funds will go towards implementing Myanmar’s COVID-19 Economic Relief Plan (CERP), announced April 27.

The Export-Import Bank of Korea has been providing ECDF loans to Myanmar since 1992. Both countries are cooperating to implement six major infrastructure projects in Myanmar, including the Dala Bridge connecting downtown Yangon to Dala township across the Yangon River.

Myanmar and South Korea are also in discussions to carry out nine other projects with $1 billion from the ECDF.

Myanmar estimates that it will require up to $2 billion (K2.8 trillion) in funds to implement the CERP and has been negotiating with its international development partners for loans and aid. On May 9, U Set Aung, Deputy Minister for Planning, Finance, and Industry, said 4-5 partners have agreed to provide most of the funds.

Last week, U Maung Maung Lay, vice president of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), said the Myanmar economy has shrunk by more than 50 percent since the COVID-19 pandemic. He added that the impact on the economy would last for at least 18 months after the virus passes.

The UMFCCI has submitted suggestions for supporting the economy during and after the COVID-19 period.

“We provided an overview of what has happened to the economy since COVID-19 first broke out and insight on how business will resume after virus passes. Our suggestions on how to achieve a quicker recovery are based on our understanding of Myanmar and observations of how the sectors from food to tourism in other countries are reopening,” said U Maung Maung Lay.

The document also includes an estimated budget to support economic recovery.

“We did not make recommendations or provide details on which sector should be prioritised. We included the situation across all the sectors and it is for the government to decide. All businesses are affected,” he said. – Translated

Source: https://www.mmtimes.com/news/korea-extends-30-million-support-myanmars-covid-19-relief-plan.html