August 19, 2016

Myanmar’s first stock market to open on 9 December

MYANMAR will open its first ever stock market on 9 December with announcements likely to be made soon regarding which companies will be selling shares. One company will be allowed to sell its shares at a time. Currently five companies have been chosen with more to come.
The Ministry of Finance has conducted 38 reform measures including amendments and revocations of 12 finance laws, the deputy minister said in a recent interview with the Myanmar News Agency.
Dr Maung Maung Thein said that the reforms were based on the five pillars of finance—public finance management, stock markets, capital markets and the formation of support groups to strengthen monetary systems.
Myanmar is introducing its stock market 15 years later than Vietnam but is expected to be on a par in three years, he quoted a business analyst as saying. The introduction of the market economy involved the emergence of many insurance companies, he added.
The stock market is the newly introduced financial system aimed at encouraging foreign investment and growth. The deputy minister noted that foreign exchangers were being invited to the financial market.
“Economic development is really nothing without insurance firms,” he said, adding that there were now 12 insurance companies, of which 11 are under private ownership.
Myanmar started taking steps to introduce the stock market back in 2012, writing the necessary laws and forming committees. Regarding foreign debts, the deputy minister said that the country owed US$11b before 2011, but the number has decreased to 6 billion following discussions with creditors such as Paris Club.—Myanmar News Agency


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