SMIDB provides $ 480 million in loans in first-batch loan disbursement

 

Workers make earthenware at a pottery workshop, one of SMEs in Yangon, in Twante Township, southeast of Yangon.

Yangon February 13

As Myanmar Small and Medium Industrial Development Bank is providing loans to small and medium enterprises, it has provided a loan of over $480 million to 11 businessmen in Yangon and Bago.

The loans are the first-batch of the provision of $ 5 billion loans lent by Japan International Cooperation Agency (JICA). In the second batch, a total of 20 businessmen will be provided with loans. It will however at least take three months to assess the loan applicants for second-batch provision of loans.

Those wishing to take loans need to have their business licenses extended. Only those who can present good business plan with environmental conservation measures will be considered for loans.

According to the bank, capital, technology and market are the major factors for development of small and medium enterprises.

There are over 120,000 registered small and medium enterprises across the Country, according to Ministry of Industry. The government provides loans to Small and Medium Industrial Development Bank at 4 per cent interest rate and the bank offers the loans at 8 per cent interest rate.

The large majority of small and medium enterprises are located in Yangon and Mandalay.

Soe Soe

The Myawady Daily