• Burmese
Sunday, June 22, 2025
No Result
View All Result
NEWSLETTER
The Irrawaddy
30 °c
Yangon
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Business
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Junta Watch
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Books
  • Donation
No Result
View All Result
The Irrawaddy
No Result
View All Result
Home Business

US Exim Bank Raises Hopes in Burma With Credit Offer

Kyaw Hsu Mon by Kyaw Hsu Mon
February 14, 2014
in Uncategorized
Reading Time: 3 mins read
0 0
A A
US Exim Bank Raises Hopes in Burma With Credit Offer

A US $100 dollar bill sits beside the Burmese kyat equivalent. (Photo: Giles Orr)

9.3k
VIEWS
Share on FacebookShare on Twitter

RANGOON — Local businesses are hoping for more foreign investment in Burma, after the Export and Import Bank of the United States (Ex-Im Bank) began offering credit for trade with the country last week.

US businesses are considering their options in Burma, after staying away for over a decade due to economic sanctions imposed on the previous military junta by the US government. Similar sanctions were imposed by Europe under the junta, and as a result Burmese traders largely dealt with Singaporean banks for export and import products.

After a quasi-civilian government came to power in Burma nearly three years ago, US President Barack Obama suspended most sanctions in 2012. He has since waived restrictions on the provision of financial services, while also authorizing new investments by Americans and permitting the importation of all products from Burma except jadeite and rubies.

RelatedPosts

Myanmar Junta Moves to Seize Sagaing Roads

Myanmar Junta Moves to Seize Sagaing Roads

June 21, 2025
914
Certifying a Chinese Security Invasion; Boosting Ties With Nuclear North Korea; and More

Certifying a Chinese Security Invasion; Boosting Ties With Nuclear North Korea; and More

June 21, 2025
829
Myanmar Junta Changes Election Law Ahead of Polls

Myanmar Junta Changes Election Law Ahead of Polls

June 20, 2025
768

“The Export-Import Bank is sending a strong signal that we are committed to strengthening economic ties with Burma as the nation continues its transition,” Ex-Im Bank board chairman and president Fred Hochberg said in a statement last week on Thursday, announcing that the bank was beginning to provide export-credit insurance, loan guarantees and direct loans for creditworthy export sales to Burma.

“After a diligent review, the Bank’s Board reached this decision—which will improve trade flows between our two countries and help reintegrate Burma into the global economy,” he said, adding that the decision would also create a new market for US exports and support American jobs.

The bank will provide similar terms as credit agencies from European and Asian countries, whose governments have gone even further in ending barriers to trade with Burma over the past three years. While the United States has suspended most sanctions against Burma, the European Union last year decided to lift all sanctions other than an arms embargo.

Burmese businesses hope the decision by the US government’s official credit agency will encourage more American investment in the country and, assuming the Burma government allows for it, the engagement of private US banks.

Burma’s central bank currently prohibits private foreign banks from operating in the country, much to the disappointment of businesses that would prefer these banks’ interest rates, which are better than the rates at local banks.

But the central bank may be looking to ease its policy, says Maung Maung Lay, vice chairman of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). Foreign banks have opened representative offices in the country over the past year, and the central bank is now considering whether to allow them to open branch offices, he says.

“I expect it may allow joint ventures with local banks,” he told The Irrawaddy.

Last year the central bank pledged to allow some foreign banks to begin offering limited financial services this year. Thirty-four international banks have opened representative offices in the country, but they have thus far been forbidden from opening branches or offering services other than advising clients.

Maung Maung Lay expressed hope that the US Ex-Im Bank’s decision last week would lead to easier access to credit for local Burmese businesses.

“The problem is that money transfers still don’t work, meaning foreign traders or companies cannot transfer money to Burma. This is because in the data systems of US banks, Burma remains on the list of countries where sanctions have been suspended, not lifted,” he said. “In practice it’s hard to deal with US banks for trading, so this should make it easier.”

He said foreign direct investment might also rise, with investors more likely to trust credit from the United States. “The US Ex-Im Bank can offer credit to US exporters to invest in Burma. It’s the beginning of their time to invest here,” he said.

Foreign investors are considering their options in Burma’s largely untapped consumer market. The country boasts plenty of natural resources, including gas and oil, and a strategic location bordering China and India. However, experts predict that investors will likely remain cautious this year, as the country’s political situation remains far from certain ahead of the 2015 elections.

Myat Thin Aung, chairman of the Hlaing Tharyar Industrial Zone near Rangoon, said he was optimistic that more private US banks would consider doing business in Burma now that the US government has started offering credit.

“US banks offer interests rates at only 5 percent. Here, local banks offer rates of 13 percent,” he said. “In the past some businesspeople took credit from US banks and saved it in local banks, so they could make money. US banks offer fast services, and if they can lend to the local manufacturing sector then development will progress more quickly.

“I doubt US heavy industries will come to invest here because we still lack regular electricity, but perhaps more small and medium enterprises will come if the US Ex-Im bank supports them.”

He urged local private banks to prepare for competition with foreign banks in the future.

Foreign direct investment has risen since Burma passed its foreign investment law in 2012 and Western countries began lifting or suspending sanctions. According to the most recent figures available, the first six months of the 2013-14 fiscal year—beginning April 1—saw the government approve projects worth more than US$1.8 billion. That compares with just $1.4 billion of FDI for the whole of the 2012-13 fiscal year.

Your Thoughts …
Kyaw Hsu Mon

Kyaw Hsu Mon

The Irrawaddy

Similar Picks:

Exodus: Tens of Thousands Flee as Myanmar Junta Troops Face Last Stand in Kokang
Burma

Exodus: Tens of Thousands Flee as Myanmar Junta Troops Face Last Stand in Kokang

by Hein Htoo Zan
November 28, 2023
98.3k

Myanmar National Democratic Alliance Army troops are opening roads and pathways through forests for people to flee Kokang’s capital as...

Read moreDetails
Burning Alive in Myanmar: Two Resistance Fighters Executed in Public
Burma

Burning Alive in Myanmar: Two Resistance Fighters Executed in Public

by The Irrawaddy
February 7, 2024
89.4k

People’s Defense Force says junta troops told every household in the village to send one member to witness the double...

Read moreDetails
Another Entire Junta Battalion Raises the White Flag in Myanmar’s Northern Shan State
War Against the Junta

Another Entire Junta Battalion Raises the White Flag in Myanmar’s Northern Shan State

by The Irrawaddy
November 29, 2023
87k

Brotherhood Alliance member says it now has complete control of Kokang’s northernmost section after the junta’s Light Infantry Battalion 125...

Read moreDetails
Depleted Myanmar Military Urges Deserters to Return to Barracks
Burma

Depleted Myanmar Military Urges Deserters to Return to Barracks

by The Irrawaddy
December 4, 2023
59k

The junta said deserters would not be punished for minor crimes, highlighting the military’s shortage of troops as resistance offensives...

Read moreDetails
As Myanmar’s Military Stumbles, a Top General’s Dissapearance Fuels Intrigue
Burma

As Myanmar’s Military Stumbles, a Top General’s Dissapearance Fuels Intrigue

by The Irrawaddy
April 19, 2024
46.9k

The junta’s No. 2 has not been seen in public since April 3, sparking rumors that he was either gravely...

Read moreDetails
Enter the Dragon, Exit the Junta: Myanmar’s Brotherhood Alliance makes Chinese New Year Vow
Burma

Enter the Dragon, Exit the Junta: Myanmar’s Brotherhood Alliance makes Chinese New Year Vow

by The Irrawaddy
February 12, 2024
44.7k

Ethnic armed grouping says it will continue Operation 1027 offensive until goal of ousting the junta is achieved. 

Read moreDetails
Load More
Next Post
No Clean Bill of Health Yet for Burma’s Anti-Money Laundering Drive

No Clean Bill of Health Yet for Burma’s Anti-Money Laundering Drive

Photo of the Week (February 14

Photo of the Week (February 14, 2014)

No Result
View All Result

Recommended

Trade and Traffic from Thai Border Region Dwindle as Checkpoints Multiply

Trade and Traffic from Thai Border Region Dwindle as Checkpoints Multiply

3 days ago
956
The Lady Myanmar’s Generals Can’t Defeat

The Lady Myanmar’s Generals Can’t Defeat

3 days ago
680

Most Read

  • Myanmar Junta Moves to Seize Sagaing Roads

    Myanmar Junta Moves to Seize Sagaing Roads

    shares
    Share 0 Tweet 0
  • Certifying a Chinese Security Invasion; Boosting Ties With Nuclear North Korea; and More

    shares
    Share 0 Tweet 0
  • Residents of Myanmar Ruby Hub Speak Out as TNLA Mining Takes Toll

    shares
    Share 0 Tweet 0
  • Myanmar Junta Changes Election Law Ahead of Polls

    shares
    Share 0 Tweet 0
  • Trade and Traffic from Thai Border Region Dwindle as Checkpoints Multiply

    shares
    Share 0 Tweet 0

Newsletter

Get The Irrawaddy’s latest news, analyses and opinion pieces on Myanmar in your inbox.

Subscribe here for daily updates.

Contents

  • News
  • Politics
  • War Against the Junta
  • Myanmar’s Crisis & the World
  • Conflicts In Numbers
  • Junta Crony
  • Ethnic Issues
  • Asia
  • World
  • Business
  • Economy
  • Election 2020
  • Elections in History
  • Cartoons
  • Features
  • Opinion
  • Editorial
  • Commentary
  • Guest Column
  • Analysis
  • Letters
  • In Person
  • Interview
  • Profile
  • Dateline
  • Specials
  • Myanmar Diary
  • Women & Gender
  • Places in History
  • On This Day
  • From the Archive
  • Myanmar & COVID-19
  • Intelligence
  • Myanmar-China Watch
  • Lifestyle
  • Travel
  • Food
  • Fashion & Design
  • Videos
  • Photos
  • Photo Essay
  • Donation

About The Irrawaddy

Founded in 1993 by a group of Myanmar journalists living in exile in Thailand, The Irrawaddy is a leading source of reliable news, information, and analysis on Burma/Myanmar and the Southeast Asian region. From its inception, The Irrawaddy has been an independent news media group, unaffiliated with any political party, organization or government. We believe that media must be free and independent and we strive to preserve press freedom.

  • Copyright
  • Code of Ethics
  • Privacy Policy
  • Team
  • About Us
  • Careers
  • Contact
  • Burmese

© 2023 Irrawaddy Publishing Group. All Rights Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • Burma
    • Politics
    • World
    • Asia
    • Myanmar’s Crisis & the World
    • Ethnic Issues
    • War Against the Junta
    • Junta Cronies
    • Conflicts In Numbers
    • Junta Watch
    • Fact Check
    • Investigation
    • Myanmar-China Watch
    • Obituaries
  • Politics
  • Opinion
    • Commentary
    • Guest Column
    • Analysis
    • Editorial
    • Stories That Shaped Us
    • Letters
  • Ethnic Issues
  • War Against the Junta
  • In Person
    • Interview
    • Profile
  • Business
    • Economy
    • Business Roundup
  • Books
  • Donation

© 2023 Irrawaddy Publishing Group. All Rights Reserved

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.