Myanmar pays interest

Myanmar pays interest

RANGOON (Reuter): Myanmarese private banks that are authorized
to conduct foreign banking business will for the first time be
allowed to pay interest on foreign currency deposits, official
media reported on Saturday.

Finance and Revenue Minister Brigadier-General Win Tin said
banks would be allowed to pay interest on the deposits effective
July 1, state-run newspapers reported.

He said these banks could earn foreign exchange income to pay
interest by depositing their foreign exchange in interest-bearing
accounts with banks abroad or by extending loans in foreign
currency locally.

The central bank would notify the banks of the deposit and
lending rates to be used, based on the Singapore Interbank
Offered Rate (SIBOR).

There are 17 local private banks in Myanmar with 21 branches
in major cities. Seven of them have been authorized to conduct
foreign exchange transactions.