MSMEs lacking collateral to receive K50M funding under CGI scheme

 

THE MSME Development Fund Management Committee announced that micro, small, and medium enterprises that can’t provide solid collateral can now receive funding up to K50 million under the new Credit Guarantee Insurance (CGI) scheme backed by Myanma Insurance and private insurers.

Loan procedures have also been relaxed to facilitate easier access for MSMEs. At present, the maximum MSME loan stands at K100 million. Financial regulations are under review with a view to increasing this ceiling.

The state has allocated K170 billion for MSME development, of which K150 billion has been set aside for direct lending. MSMEs now account for approximately 90 per cent of all businesses in Myanmar, generating about 70 per cent of total employment.

MSMEs are facing multiple challenges, including capital shortages, outdated technology, limited market access, a lack of skilled labour, weak supply chains, and the ripple effects of global economic slowdown.

TWA/KK

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