The Myanmar Ministry of Cooperatives reportedly has budgeted MMK 50 billion (USD 51.8 million) to support microfinance, specifically in the country’s agricultural sector [1]. Loans will be made available at a monthly interest rate of 1.5 percent. The funds are being sourced from a loan of MMK 676 billion (USD 697 million) that Myanmar received from China in 2013.
As of 2013, an estimated 150 microfinance institutions (MFIs) serve 2.8 million clients in Myanmar, with a total loan portfolio of USD 283 million [2].
By Nisha Koul, Research Associate
Sources and Additional Resources:
[1] Mizzima, “Cooperatives Ministry to provide $52 million for micro-financing,” http://mizzima.com/mizzima-news/myanmar/item/11202-cooperatives-ministry-to-provide-52-million-for-micro-financing
[2] International Business Times, “Myanmar Microfinance (MFI): New Directive Caps Loans At $500, Could Stifle Small Business Growth,” http://www.ibtimes.com/myanmar-microfinance-mfi-new-directive-caps-loans-500-could-stifle-small-business-growth-1556343
MicroCapital Story, March 3, 2014, “Microfinance Supervisory Committee of Myanmar Caps Microloans at $509, Interest Rates at 2.5% per Month,” https://www.microcapital.org/microcapital-brief-microfinance-supervisory-committee-msc-of-myanmar-caps-microloans-at-509-interest-rates-at-2-5-per-month/
MicroCapital Story, February 13, 2013, “Microfinance in Myanmar Sector Assessment”; by Eric Duflos, Paul Luchtenburg, Li Ren and Li Yan Chen; published by CGAP (Consultative Group to Assist the Poor), International Finance Corporation,” https://www.microcapital.org/microfinance-paper-wrap-up-microfinance-in-myanmar-sector-assessment-published-by-eric-duflos-paul-luchtenburg-li-ren-and-li-yan-chen-published-by-cgap-consultative-group-to-as/
MicroCapital Story, January 16, 2013, “Government of Myanmar Announces Microfinance to be Key Element of Development Plans,” https://www.microcapital.org/microcapital-brief-government-of-myanmar-announces-microfinance-to-be-key-element-of-development-plans/
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