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Thai lenders step in after Myanmar blocks foreign currency repayment

  • Jul 20, 2022

Thai businesses operating in Myanmar have been advised to seek funding sources in Thailand or other countries after the Central Bank of Myanmar (CBM) suspended loan repayment in foreign currencies.

The Department of International Trade Promotion (DITP) director-general Phusit Rattanakul Seriroengrit said on Tuesday that CBM asked commercial banks across the country on July 13 to suspend loan repayments in foreign currencies to shore up the weakening kyat.

This move would affect foreign companies who operate in Myanmar as they can no longer repay debts with foreign currencies, he added.

“Thai businesses who operate in Myanmar and borrow in foreign currencies must seek funding sources in Thailand or other countries to prevent defaulting on their debt repayments,” he said.

Phusit Rattanakul SeriroengritPhusit Rattanakul Seriroengrit

He added that DITP’s international trade office in Yangon is cooperating with commercial banks in Thailand to grant loans for Thai businesses in Myanmar.

 

Published : July 19, 2022

By : THE NATION