Myanmar Regime Turns to Belarus for High Interest Loans as Fiscal Crisis Deepens
Myanmar’s military regime, squeezed by a worsening fiscal crisis, has turned to its ally Belarus for high‑interest loans, with its rubber-stamp parliament granting approval to borrow at rates nearing 10 percent.
On Wednesday, lawmakers endorsed coup leader Min Aung Hlaing’s proposal to secure loans from Belarus just eight days after he submitted the request to the Union Parliament. The loans will be used to purchase goods from Belarus.
The loans will come from the state-controlled Development Bank of the Republic of Belarus (DBRB) and Belinvestbank JSC, with maturities ranging from one to five years. The regime has not disclosed the total amount, but the high interest rates have already drawn criticism.
Deputy Finance Minister Than Than Lin told parliament on October 6 that rates would range from 2.25 to 9.33 percent. Her colleague Kyaw Htin argued on October 14 that the short‑term nature of the loans — capped at five years — would limit exposure to market volatility.
The loans can be denominated in Russian rubles, Belarusian rubles, yuan, US dollars, or euros, with interest rates varying by currency type and commodity group. The regime says it will pre‑screen payment channels to avoid currencies subject to sanctions.
Authorities plan to use the loans to import capital goods (machinery), intermediate goods (raw/semi-finished products), consumer products, and other commodities. Purchases of Belarusian‑made goods, machinery, technology, and services will be financed through Belarusian banks, with Myanmar ministries, agencies, or private firms acting as buyers. In effect, Belarusian exporters will supply the goods while Myanmar entities serve as importers.
Three state‑owned banks, Myanmar Economic Bank, Myanmar Foreign Trade Bank, and Myanmar Investment and Commercial Bank, have already signed banking arrangements with Belarus, and talks are underway to open accounts.
During Min Aung Hlaing’s August trip to Minsk, the regime signed nine agreements, including a loan framework deal between Myanmar’s Ministry of Finance and JSC Development Bank of Belarus.
While the junta chief has repeatedly insisted Myanmar must rely on domestic resources rather than foreign loans, his regime’s rush to secure Belarussian credit underscores the depth of its fiscal crisis. The loan approval came the same day that lawmakers nodded through the regime’s proposal to “borrow” up to 2.1 trillion kyats from the Central Bank of Myanmar to fill its 2026-27 budget deficit.
“Myanmar’s public will suffer from the high-interest loans, which will be repaid at the expense of education and health budgets,” said a Myanmar analyst.
Myanmar’s ties with Belarus were once limited to arms sales, but since the 2021 coup cooperation has expanded into politics, economics, and now finance. Belarus has emerged as a key ally alongside Russia, with Min Aung Hlaing visiting Minsk frequently while also hosting Belarusian strongman Alexander Lukashenko in Naypyitaw.
Lukashenko was the first foreign leader to visit Myanmar after Min Aung Hlaing installed himself as head of state in April.
Reports suggest the regime may next lean on Russia for credit, with President Vladimir Putin pledging financial sector cooperation in August while hosting Min Aung Hlaing in Moscow.
Meanwhile, the junta has cut imports of basic goods including fuel, cooking oil, and steel to save foreign currency, while squeezing revenue through tax hikes, natural resource sales, and tighter remittance rules for migrant workers.
After the World Bank, Asian Development Bank, and Western governments suspended aid and imposed sanctions following the coup, Min Aung Hlaing’s regime has been increasingly dependent on loans and support from his authoritarian allies, analysts say.
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