(Bloomberg) -- The Central Bank of Myanmar asked residents to suspend foreign loan repayments in the recent period, in the nation’s latest effort to tighten measures on outflows of foreign currencies. 

In a letter to banks licensed to deal in foreign exchange, Deputy Governor Win Thaw asked residents to suspend the repayment of interest and principal of various foreign loans obtained either in cash or in kind. The new directive requires licensed banks to inform their business customers with foreign debt to adjust loan repayment schedules with overseas lenders. 

The financial authority also allowed foreign institutions to establish wholly foreign-owned non-bank financial institutions or enter into joint ventures, in a bid to boost foreign capital. The government earlier revoked exemptions given to registered companies with minimum 10% foreign ownership from the mandatory foreign exchange conversion rule.

Earlier this month, junta spokesman Major General Zaw Min Tun told reporters that Myanmar must spend about $700 million for domestic and foreign loan payments every year. The regime has also banned imports of cars and luxury items as well as tightened fuel and cooking oil imports. The junta’s restriction on the use of foreign currencies resulted in the suspension of automobile production and hikes on car prices in the country.

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