Dec 26, 2011

Myanmar to reduce bank loan interest rate to encourage business undertakings

Myanmar will reduce bank loan interest rate from 12 percent to 10 percent starting from Jan. 1 next year as part of its measure to encourage private entrepreneurs to carry out business undertakings in the country at low interest rate, official report from Nay Pyi Taw said on Saturday.

Aimed at developing investment and national economy, the Central Bank of Myanmar will also re-set the interest rate for deposit not to be less than 8 percent, which is 2 percent lower than bank rate, the report said.

On Sept. 1 this year, the Central Bank of Myanmar has adjusted bank loan interest rate with a view to accelerating the national economy, encouraging investment, higher performance by creating competitiveness among banks, and setting different interest rates of bank savings.

Ministry of Finance and Revenue was adopting suitable monetary policies by accessing current economic and monetary conditions for stable economic growth of the country.

According to the Finance and Revenue Ministry, the Central Bank of Myanmar has allowed establishment of private banks since 1992 and so far there are 19 private banks in the country operating with 305 branches.

Source: Xinhua