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YBS Services: No Guarantee Made By Regional Government For Mortgage Loan

11 April 2019

Under the guidance of the Yangon Region Transport Authority (YRTA), Yangon Bus Service (YBS) started its bus network operating system on 16th of January, 2017. 

About 2 million daily commuters are relying on the public transportation in Yangon. In the YBS system, more than 20 bus line services companies have been invested about 2 and a half year since its operation. Most of the companies applied for mortgage loans in private banks in order to upgrade and maintain the bus services since that time.

Concerning the mortgage loan by the bus line services, Chief Minister U Phyo Min Thein stressed that the Regional Government made no pledge or guarantee to the private banks that has disbursed loans to the companies.

Chief Minister, Yangon Region Government, H.E. Phyo Min Thein said “The regional government didn’t pledge and force to any banks for granting loan to these bus line services company. All the private banks are operating in accord with the existing rules and regulations. We have learnt that Omni Focus company get loan from AYA bank with the instruction of me. So, I would like to say that all the cabinet member of Yangon Region Government including me, made no guarantee to any people and company.”

Omni focus General Service invested over 40 million USD with more than 500 buses in public transportation. Omni focus is providing service with over 300 buses with 6 YBS bus lines up to now.

The Chief Minister added that all bus service companies applied and were granted for bank loans in line with the regulations set by the concerned banks. The regional Government allowed all the companies to do their businesses without any interference.

Chief Minister, Yangon Region Government, H.E. Phyo Min Thein said “We never give any other special chance and power to private companies. We carried out our duty in line with the rules and regulations. We never try to prevent anyone to do their businesses. We allow them to do their business freely under the existing law. We don’t have any relationship with Omni Focus Company personally or financially. All the bus lines companies get loan from banks and deposited to their own accounts. All the banks also granted loans to these companies in accord with their rules and regulations.” 

More than 4000 buses are operating in Yangon City area daily, with 50 % brand new buses, 29 % in city buses and 21 % in mini buses so far. YRTA plans to install Yangon Payment Service Card System in 4000 buses during this year.