Yangon—In order to remedy the social and economic impacts caused by COVID-19 and help support the country’s economic policy reforms, the Ministry of Planning, Finance, and Industry submitted a proposal to take a loan of 30 billion Japanese Yen from the Japan International Cooperation Agency (JICA).

Deputy Ministry for Planning, Finance, and Industry U Maung Maung Win submitted that proposal at the session of Union Parliament on 21 May. 

Using the State funds as well as overseas loans, the government needs to provide assistance for the prevention, control, and treatment of COVID-19, the socio-economic impacts caused by COVID-19, and remedy plans for the rehabilitation of businesses,” he added. 

The government is working on the disbursement of ODA loans to all sectors such as infrastructure, SME, agriculture, and livestock and urban development sectors. Like other countries, Myanmar will have to bear the brunt of COVID-19. As Japan has offered to grant the JICA ODA Emergency Loan as part of efforts to assist the country’s financial needs, the ministry has to submit the proposal to take a loan of 30 billion Japanese Yen, he added. 

As a measure to remedy the social and economic impacts caused by COVID-19, the government has released COVID-19 Economic Relief Plan (CERP) on 27 April. The tasks set for the CERP will be implemented in the long and short terms, he continued. 

“In doing so, the use of financial sources is required. The JICA will grant additional loans based on the progress of policies,” he said. 

The grace period for the JICA’s loan is 10 years and the repayment period, 30 years. The loan interest rate is 0.01 per cent. The JICA’s loan scheme aims to help Myanmar’s efforts for reforms to economic policies