Auditor general cautions government about Chinese loans

11 June 2020
Auditor general cautions government about Chinese loans
(File) Myanmar State Counselor Aung San Suu Kyi (R) and Chinese President Xi Jinping (L) pose for photos while shaking hands during a meeting at the Presidential Palace in Naypyitaw Myanmar, 18 January 2020. Photo: EPA

Myanmar’s auditor general has cautioned government officials about continued reliance on high-interest Chinese loans, as the country begins to pay off debt taken on during decades of military rule and accept new loans under China’s massive Belt and Road Initiative, RFA reported.

As Myanmar’s largest lender, China holds considerable leverage over the underdeveloped and largely impoverished country. China also is the nation’s biggest trading partner and one of its largest sources of inward investment in its southwestern neighbour.

Myanmar’s current national debt stands at about U.S. $10 billion, of which U.S. $4 billion is owed to China, Auditor General Maw Than told a news conference in Naypyidaw.