Foreign Bank Lending In Myanmar¹

Currently, foreign bank activities in Myanmar are severely curtailed.² Where the lender to a company incorporated or project located in Myanmar is a foreign bank, the following issues, among others, arise for consideration.³

The Financial Institutions Law 1990 provides that only "financial institutions" established in Myanmar and approved by the Central Bank in accordance with the terms of the Financial Institutions Law may carry out any of the following activities, among others, in Myanmar:⁴

(a) lending or advancing money, whether with or without security;

(b) accepting debentures and other documents of title and debt securities, whether negotiable or not;

(c) financing or assisting in financing any business undertaking through syndicates or otherwise;