Government will provide loans in 2017 to develop the SMEs

February 26, 2017

Japan International Cooperation Agency (JICA) will provide Ks 15 billion loan through the government to develop small and medium enterprises (SMEs) in 2017, according to Directorate of Industrial Supervision and Inspection Department under the Ministry of Industry. JICA will provide the loan with the low interest. The loan will be in the form of two- step loan. Then, the loan will be granted through Myanma Economic Bank (MEB).

“The loan from JICA will be provided with two- step loan system. JICA will provide Ks 15billion officially. They have planned to provide further assistance. We are monitoring the development of SMEs and services as well as whether enterprises are receiving the loans or not,” said Daw Aye Aye Win, Director-General from the Directorate of Industrial Supervision and Inspection Department.

The SMEs businessmen need to apply for the loan to the Small and Medium Enterprise Development Department mentioning the current business situations and the future programmes.

The government has been providing the training course for developing of human resources, marketing and management with the assistance of the expatriate experts. The SMEs businessmen also need to be well prepared so that they can get the loans.

“Myanmar SMEs businessmen don’t dare to cooperate with foreign SMEs business men. So, we need to create a friendly environment which facilitates co-operation between foreign and local SMEs businessmen,” said Mr. Yoshito Sengoku, Vice chairman from Japan Myanmar Association. “We are thinking of the ways to reduce the bank interest rate of 13 per cent per annum. If we can reduce the interest rate, it will be of benefit to the local SMEs businessmen. We are also discussing in Pyithu Hluttaw to reduce the interest,” said Union Minister for Planning and Finance U Kyaw Win at the meeting of the SME entrepreneurs held on 18 February. Small and Medium Enterprise Development Department is giving recommendation to the SMEs businessmen to get the loan from MEB. The local banks give loans especially those medium businesses which are doing well.

Ref; The Global New Light of Myanmar