Myanma Economic Bank, teaming up with six private banks will give K30 billion loans to small and medium enterprises (SMEs), according to Ministry of Industry.
The country’s SMEs can acquire loans from the Myanma Oriental Bank, Ayeyawady Bank, from Co-Operative Bank (CB), commonly known as CB Bank, the Myanmar Citizens Bank, the Kanbawza Bank and the Small and Medium Industrial Development Bank under the Credit
Guarantee Insurance (CGI) system, Daw Aye Aye Win, the head of the industrial inspection and administration department of the Ministry of Industry, said yesterday at a forum on prospects for SMEs held in Yangon.
The move is aimed at developing SMEs in Myanmar, she added.
“To get the loans, SMEs should provide enough collateral or strong business, and they can
apply for loans at the banks by September” said Daw Aye Aye Win.
The businesses can get at least K15 million to K500 million with the interest rate of 8.5 per cent, and if they can not provide
collateral, they need to pay another 2.5 percent. The duration of the loan is set for five years.
The CGI system is jointly implemented by Myanma Insurance, Sumitomo Mitsui Banking Corporation and CB Bank.
Small and Medium Industrial Development Bank (SMIDB) announced last month that 300 Small and Medium-sized Enterprises (SMEs) have outstanding repayments for the 2015-16 fiscal year.
K5bn have been issued to 11 SMEs this fiscal year, and K20 billion issued to SMEs in the 2015- 2016 FY by the SMIDB.
At the moment, 90 per cent of Myanmar Businesses are SMEs.
Source: The Global New Light of Myanmar