The Pyidaungsu Hluttaw (Union Parliament) approved, through a vote at its session on October 14, the proposal submitted by the President to obtain export credit from Belarus’ DBRB and Belinvestbank JSC.
During the parliamentary session on October 8, representatives discussed the proposed export credit arrangement with the two Belarusian banks. Deputy Minister for Finance and Revenue U Kyaw Htin addressed the issues raised during those discussions at the October 14 session.
He explained that foreign loans must be managed in accordance with the terms and conditions stipulated in the loan agreements, including the currency, interest rate and repayment period. As the loans would be denominated in foreign currencies, they could expose the country to foreign exchange and interest rate risks. The impact of exchange rate fluctuations could vary depending on the currencies used, and measures would be taken to minimize exchange rate risks.
As the proposed loans would have a maximum term of five years, making them short-term loans, their exposure to market fluctuations could be reduced. The Deputy Minister said the stability of the borrowing currencies, relevant benchmark interest rates and repayment schedules would be carefully assessed before obtaining the loans to minimize potential risks arising from exchange rate and interest rate fluctuations.
Regarding arrangements to facilitate banking operations and payments, he said banking arrangements had been signed between three state-owned Myanmar banks and Belarusian banks DBRB and Belinvestbank JSC. Negotiations were underway to open bank accounts and facilitate transactions between the Myanmar state-owned banks and their Belarusian counterparts.
The export credit could be obtained in five different foreign currencies. The Ministry would assess the options to ensure that the loans were obtained in currencies not subject to sanctions and would review suitable payment channels in advance, the Deputy Minister said.
He added that the goods and services to be purchased using the export credit provided by Belarus would be carefully selected in coordination with the borrowing departments and organizations to ensure they met the country’s actual needs and delivered tangible and effective benefits to the public.
Following the Union Parliament’s approval of the framework agreement on export credit, the relevant procedures would continue in accordance with the agreement. The Ministry would also monitor implementation to ensure that the intended objectives were achieved and oversee loan repayments in line with established procedures, he said.
The Deputy Minister submitted the proposal seeking parliamentary approval under Section 9 of the Union Budget Law for the 2026–2027 financial year and Section 13 of the Public Debt Management Law, following the signing of framework agreements on export credit between banks in Myanmar and Belarus.
After the Deputy Minister’s presentation, members of the Union Parliament voted electronically and Pyidaungsu Hluttaw Speaker U Aung Lin Dwe announced that the proposal had been approved with 506 votes in favour, nine against and eight abstentions.
