YANGON, Nov. 23 (Xinhua) -- Myanmar has allowed local securities companies to purchase government treasury bonds, according to the Securities and Exchange Commission of Myanmar (SECM) Wednesday.
Five local securities companies, which operate at Yangon Stock Exchange (YSX) have been granted and another five are waiting to be granted.
The minimum paid-up capital of a securities company is 15 billion kyats (over 11 million U.S. dollars) and the company had to submit 10 percent of which to SECM as a deposit.
Myanmar changed the policy that the country's government treasury bonds were only sold to the individuals and corporate bodies, to attract more money to fill the government's budget.
The Central Bank of Myanmar has started the treasury bonds auctions to banks since September this year. Not only granted banks which opened accounts at the central bank but also individuals and corporate bodies are allowed to participate in the auction.
Deputy Governor of the Central Bank of Myanmar, U Set Aung, told the parliament in August that 60 percent of the government's internal debt in this fiscal year was planned to be solved through treasury bond and bill sales.
As a developing country, Myanmar is always encountering budget deficit and the country has to take both external and internal debt in order to meet the vital needs.
According to the current expenditure budget of the country, budget deficit in 2016-17 fiscal year reached 3,992 billion kyats (3.36 billion U.S. dollars).
Myanmar owes a total of 8.742 billion U.S. dollars of foreign debt, U Maung Maung Win, Deputy Minister for Planning and Finance told the House of Representatives in August.
