Myanmar talking with World Bank, ADB, IMF for funds to rescue economy

The World Bank Group building in Washington DC

May 7 - The Myanmar government is negotiating for aid and assistance from the World Bank, Asian Development Bank (ADB) and International Monetary Fund (IMF) to help it implement a stimulus plan to rescue its virus-hit economy, according to Myanmar Times Thursday.

In a news report quoting U Maung Maung Win, deputy minister of Planning, Finance and Industry, the media outlet said the funds being negotiated for will be used to provide relief to businesses and industries affected by Covid-19.

On April 27, the government announced The Covid-19 Economic Relief Plan (CERP) to provide relief to the private sector through low-interest loans of up to K500 billion and credit guarantee schemes.

So far, the World Bank has approved a US$50 million financing scheme for the Myanmar Covid-19 Emergency Response Project as part of global emergency support operations through a dedicated fast-track COVID-19 facility, Myanmar Times said.

The World Bank has also announced it is deploying up to US$160 billion in financial support over the next 15 months to help countries protect the poor and vulnerable, support businesses, and bolster economic recovery.

U Kyaw Kyaw Maung, governor of the Central Bank of Myanmar (CBM), has said there is a possibility that the Myanmar economy could slip into recession as a consequence of the pandemic.

The CBM is applying for IMF's Rapid Credit Facility and Rapid Financing Instrument.

In the meantime, aid has come from the west.

Denmark on May 6 confirmed its support to two local garment manufacturers to reorganise their factory facilities for the production of personal protection equipment (PPE), such as medical grade masks and isolation gowns, by placing orders worth of K200 million, according to Myanmar Times.

Last month, the European Union (EU) said it would provide €5 million (K7.9 billion) in cash to support garment workers in Myanmar affected by Covid-19.