Problems relating to Trade and Investment on Myanmar

13. Finance
Issue	Issue details	Requests	Reference

(1) Cap on the Bank Deposit Withdrawal Amount in USD	- Cap on the bank deposit withdrawal amount is USD10,000 per withdrawal (no cap for MMK). Withdrawal in USD is possible only in a limited number of the bank outlets. In addition, due to the U.S. economic sanctions, no remittance from abroad is possible to the state banks (MICB, MFTB).	- It is requested that GOJ takes steps to induce GOM to: -- deregulate restrictions on deposit withdrawal, increase in the number of bank outlets, and -- enables remittance to state banks in future.
	(Action) - On 27 May 2015, CBM reduced the USD Cash Withdrawal Limit to USD5,000 per day (Going Amount USD10,000) and USD10,000 per week (Going amount USD 50,000).

(2) Restricted Loan Ratio on Capital Contribution

- Central Bank of Myanmar (CBM) directs limiting the loan ratio to less than 30% of the capital contribution. However, since this requirement is not written into regulation, divided views are heard in the investment administration. For the sake of expediting the application, the member firm had to hold down the loan ratio within 30% on its capital contribution.

- It is requested that GOM clarifies if the numerical guidance is its request or by regulation.

- Central Bank of Myanmar Letter No. MaBaKa/ Bank Si Sit/Gen(6/201) of 3 January 2014

(3) Prohibited Local Borrowing of Foreign Currencies	- Borrowing in foreign currency from the local financial institutions is disallowed in Myanmar.	- It is requested that GOM takes step to enable borrowing in foreign currency from the domestic financial institutions Myanmar. (Foreign banks opening of branch offices are desirable.)
	(Action) - On 28 May 2015, central bank of Myanmar circulated a letter directing all federal and local ministries and agencies to ensure thoroughly the use of Myanmar (Burma) Kyat currency in the domestic settlement of accounts in Myanmar.

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