Myanmar Business Today - Vol 2, Issue 3

mmbiztoday.com

MYANMAR’S FIRST BILINGUAL BUSINESS JOURNAL

Fiscal Crisis Looms Over Myanmar Sans Public Finance Reforms

January 16-22, 2014 | Vol 2, Issue 3

Myanmar One of The Top Countries to Invest in 2014, But Risks Remain The only country to significantly improve its risk profile last year: analysts Kyaw Min

Soe Zeya Tun/Reuters

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Josh Wood

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ax reform may not be sexy, but Myanmar’s ÀHGJOLQJ PDUNHW HFRQR P\LVLQGHVSHUDWHQHHGRI¿VFDO consolidation. A combination of well-intentioned reforms and VRPHXQVDYRXU\OHJDFLHVRIWKH ROG PLOLWDU\ UHJLPH KDYH OHIW SXEOLF ¿QDQFHV LQ D SUHFDULRXV position. If the current methods RI SXEOLF ¿QDQFLQJ DUH QRW UH structured quickly, a debt crisis is a real possibility.

At present, Myanmar’s public debt as a percentage of gross GRPHVWLFSURGXFW*'3 LVṘ  cially estimated at 45.7 percent, KDUGO\ DQ H[WUDRUGLQDU\ ¿JXUH E\ JOREDO VWDQGDUGV (YHQ D GHYHORSLQJ FRXQWU\ VXFK DV Myanmar, with its long history of instability and economic mismanagement, could maintain the good graces of global capital markets if public debt remained DWWKLVPRGHUDWHOHYHO Contd. P 6...Ī)LVFDO&ORXGī

Myanmar Summary

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