30 January 2019
On 14 January 2019, the Central Bank of Myanmar (“CBM”) issued Directive 1 of 2019 (“Directive”) which amends and increases lending rates with effect from 1 February 2019. The Directive stipulates that Myanmar banks will be permitted to extend loans without the need for collateral at a maximum lending rate of 16%. The CBM rate will remain unchanged at 10%, while the maximum lending rate for loans based on CBM-specified collateral will remain at 13%. The minimum deposit rate will also remain at 8%. The highest lending rate as mentioned in this Directive is the total rate which will include the fixed lending rate for loans added to other collectable charges. These rates will apply to Myanmar banks and foreign bank branches licensed to operate in Myanmar.