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Covid-19 loan repayment period extended for one more year

The working committee to address the impact of Coronavirus Disease 2019 (COVID-19) on 4 November announced Notification 3/2022 on a one-year extension of the Covid loan repayment period from the second-year due date. According to the priority sector, 5,990 companies and enterprises were granted loans from K200 billion of COVID-19 funds for a total of K158.4438 billion with an interest rate of one per cent and a loan period of one year from 9 April 2020.

Loans flow to businesses such as CMP, hotels and tourism, small and medium-scale enterprises, agriculture, livestock breeding and marine production, export products manufacturing industries, import-substitute products manufacturing industries, businesses that participate in the supply chain from local production to the export sector, foodstuffs manufacturing businesses, overseas employment agencies and vocational training schools.

In the notice of the working committee for loans, it stated: “If it fails to repay, action will be taken under the law,” and so companies/industries that took loans from the Myanma Economic Bank fail to pay back the capital and interest, they will face legal action as per the terms and conditions of the loan contract and they must repay the outstanding loan completely within the period of extension. 

Source: The Global New Light of Myanmar

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Pure gold price edges up to K2.68 mln per tical tracking increase in global gold price

The price of pure gold inched higher to K2,680,000 per tical (0.578 ounce, or 0.016 kilogramme) following the increase in global gold spot prices, according to the domestic markets. The reference price issued by the YGEA has also risen simultaneously. On 4 November, the YGEA’s price was K1,936,000 per tical when the global gold spot price was US$1,644 per ounce. On 5 November, the global gold price increased to $1,681 per ounce, the reference price by the YGEA also climbed up to K1,980,000 per tical.

There is a price gap of about K700,000 per tical between the price set by the YGEA and the market price. YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition. The dollar was exchanged at K3,000 in the black market. Therefore, there is a large gap between the YGEA’s price and the market price based on the black-market dollar rate.

Meanwhile, YGEA called for the gold shops in Yangon Region to sell the pure gold at K2,530,000 per tical, according to its notification released on 30 October 2022. The soaring dollar exchanging at over K4,500 pushed up pure gold price to a record-high of K3.7 million per tical in late August. In order for the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots in Yangon, Mandalay and Nay Pyi Taw under the auction system. With an aim at reducing gold price, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.

Source: The Global New Light of Myanmar

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4,100 companies fail to submit AR in past ten months: DICA

A total of 4,100 companies have been struck off the register in the past ten months as they fail to submit annual returns (AR) on the online registry system, MyCO, according to the Directorate of Investment and Company Administration (DICA). This year, 400 companies each in January, February and March, 300 in April and 500 in May, 400 each in June and July, 55 in August and 400 each in September and October did not file annual returns on MyCO respectively, according to DICA. The DICA has notified any registered company which fails to file its AR on MyCO is to be suspended under 430 (F) of the Myanmar Companies Law, according to DICA’s notification.

The registration and re-registration of companies on the MyCO website commenced on 1 August 2018 under the Myanmar Companies Law 2017. All registered companies need to file AR on the MyCO registry system within two months of incorporation, and at least once every year (not later than one month after the anniversary of the incorporation), according to Section 97 of the law. According to Section 266 (A) of the Myanmar Companies Law 2017, public companies must submit annual returns and financial statements (G-5) simultaneously. All overseas corporations must submit ARs in the prescribed format on MyCO within 28 days of the financial year ending under Section 53 (A-1) of the Myanmar Companies Law 2017.

As per DICA’s report, thousands of companies were suspended for failing to submit AR forms before the due date. Newly established companies are required to submit ARs within two months of incorporation or face a fine of K100,000 for filing late returns. The DICA has notified that any company which fails to submit its AR within 13 months will be notified of its suspension (I-9A). If it fails to submit the AR within 28 days of receiving the notice, the system will show the company’s status as suspended. Companies can restore their status only after shelling out a fine of K50,000 for the AR fee, K100,000 for restoration of the company on the Register, and K100,000 for late filing of documents, totalling K250,000. If a company fails to restore its status within six months of suspension, the registrar will strike its name off the register, according to the DICA notice.

Source: The Global New Light of Myanmar