January 26, 2018
The Ministry of
Industry held an event to disclose the small and medium enterprise (SME)
policies and loan plans of Myanma Economic Bank (MEB) yesterday in Loikaw Town.
Officials from
the Kayah state government, as well as the State Auditor General, SME agency representatives,
and officials from the concerned departments were in attendance.
The Chief
Minister of Kayah State government delivered an opening speech and the state’s
transport and electricity minister explained the SME policies.
Daw Ye Ye Khine,
regional manager of MEB, then explained the loan plans. Director U Myo Lwin of
the Directorate of Industrial Supervision and Inspection set out policies
concerning SMEs. The authorities and officials concerned responded to questions
raised by the entrepreneurs. SMEs help boost the country’s production and
enhance import substitution.
MEB’s SME loan
plan provides up to Ks300 million for a three- to five-year term to SMEs, with
an interest rate of 9 per cent. Priority will be given to businesses in the
manufacturing, import and export, recycled energy savings, technical-based
production and service industries. However, the loan plan requires a mortgage
to be taken for movable and immovable properties and various types of
insurance.
SMEs that fail
to present a mortgage as required are only entitled to the loan plan if they
participate in the Credit Guarantee Insurance (CGI) system, linked with Myanma
Insurance.
MEs that accept
a loan under the CGI plan must pay a premium, along with the interest payment.
Currently, these enterprises only qualify for a maximum loan of Ks20 million.
GNLM
Ref; The Global
New Light of Myanmar
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