30 July 2020
The 2nd Pyidaungsu Hluttaw’s 17th regular session continued its 7th day meeting in Nay Pyi Taw on 29th July. Following the session, representatives of Pyidaungsu Hluttaw discussed to response to the impacts of COVID-19 with the loan totaling USD 250 million according to the program of COVID-19 Active, Response and Expenditure Support (CAREA) launched by Asian Development Bank (ADB).
At the last 6th day meeting, five different representatives of Pyidaungsu Hluttaw advocated the proposal to receive the ADB loan and offered the suggestions on allocation of the loan budget. Following this discussion, Deputy Minister for Ministry of Planning, Finance and Industry, U Maung Maung Win, explained and answered every single advocating and suggestion from the Hluttaw representatives at the 7th day meeting of today.
“The Ministry of Planning, Finance and Industry cooperating with Asian Development Bank are going to carry out the processes of monitoring and evaluating for the ADB loan. The loan is aimed for supporting COVID-19 active and response expenditure and so the budget will be used to remedy the areas which are hit by the impact of COVID-19 seriously in accordance with the permission from the Union Government. Major Win Lwin Oo, the Tatmadaw representative, discussed and suggested taking the loan from the ADB to use a partial amount of the budget for the cost of buying potential vaccine. The MPFI also supposes that is a relevant avocation.”
U Sein Aung, the Hluttaw representative of Paletwa Township, discussed to spend USD 250 million loan from the ADB in the area of health care services for internally displaced persons in the IDP camps at the last 6th day meeting. Deputy Minister U Maung Maung Win responded on Hluttaw representative’s the discussion.
“The health care services for the IDPs in relief camps around Myanmar are being provided with the fund from the national budget. The ADB loan will be spent in the relief measures according to its priority. The Asian Development Bank issues the loan according to the receiving country’s economy, finance and monetary policy. The borrower country needs to strive for the relevant result in three main measurement indicators. There is also a plan to help the citizens who are suffering the impact of COVID-29, to step up the prevention, control and treatment processes for infection and to remedy the small and medium enterprises with the support. The ratio for GDP and Budget Deficit will be maintained at 5.41 % in the 2020-2021 fiscal years. And the loan from ADB is going to be used in immediate, effective and direct projects like creating employment opportunity for the public and country.”
Then, Deputy Minister U Maung Maung Win submitted the proposal to Pyidaungsu Hluttaw to approve the ADB loan for COVID-19 Active, Response and Expenditure Support (CAREA). The Pyidaungsu Hluttaw representatives agreed to receive USD 250 million as COVID-19 Active, Response and Expenditure Support (CAREA) from the Asian Development Bank (ADB).
The government has to implement these relief and recovery processes with national budget till 2020 December. When the country has the relevant results in performance indicators by ADB, the loan is going to be received. Then, the ADB loan is going to be used in prioritized sectors in the relief and recovery processes. The loan can be suspended for 8 years, 16 years for repayment, and 24 years in total. The interest rate for ADB accounts for 1 % for the suspended eight years and 1.5 % for 16 years of repayment.
Photo Credit - Pyidaungsu Hluttaw