Nishant Choudhary, DFDL Partner, was recently quoted in the Finance Frontier Myanmar article ‘CBM Updates Offshore Loan Criteria’.
This articles discusses the Central Bank of Myanmar’s (“CBM”) new criteria for offshore loans lowering the minimum capital requirements for certain companies to access overseas financing and clarifying debt to equity ratio requirements. Many legal experts feel that greater clarification is needed.
Nishant identifies the reason behind the changes as “towards general liberalization efforts by the CBM”, however the criteria “fails on certain fronts”.
In Nishant’s opinion, the debt to equity ratio causes “major difficulties for large project companies in sectors like oil and gas, energy, and infrastructure since the debt portion in such companies is much higher as compared to the equity”.
He explains that the previous criteria requiring an 80% equity commitment for an MIC company remains intact.
The full article “CBM updates offshore loan criteria” can be found here: https://finance.frontiermyanmar.com/news/banking/cbm-updates-offshore-loan-criteria.
Frontier Myanmar Research (FMR), is Myanmar’s leading business information and advisory company producing a range of customised and subscription-based services. The Myanmar Financial Services Monitor is FMR’s fourth subscription service in Myanmar. Launched in 2017, it provides detailed, up-to-date and original industry information on banking, insurance, microfinance, capital markets, e-money and fintech.