Myanmar to borrow to finance pay hike
YANGON - Myanmar President Htin Kyaw recently asked the Union Parliament to approve the government's borrowing of US$100 million.
In the proposal, he said the government would borrow the amount from World Bank. It was reported on Monday that Union-level organisations made plans to discuss the matter after the parliament received the proposal.
Out of the $100 million loan, $60 million is reserved for a pay hike, allowances and cash rewards for civil servants.
The rest will be spent on technological assistance for reforming state-owned banks, the improvement of small-scale financial services, the adoption of new policies for insurance services, information gathering, training and capacity-building for staff from the Ministry of Planning and Financial development and the development of the payment system.
The $100 million loan carries zero interest rate and will have to be settled within 38 years.
According to World Bank, Myanmar's budget deficit for fiscal year 2014/2015 amounted to roughly 4 per cent of gross domestic product.
