Myanmar will loan 14.949 billion yen from Japan International Cooperation Agency for the small and medium enterprise development project (phase 2), and each entrepreneur can loan up to K50 million, said Deputy Minister for Planning and Finance Maung Maung Win.
The deputy minister submitted the loan matter to a session of union parliament held in Nay Pyi Taw on February 13.
He said for the project (phase 1), 5.033 billion yen (about K61.654 billion) was borrowed from JICA. He added that additional loans were necessary to finically help Myanmar's over 60,000 SMEs.
The loan period for the project (phase 2) will be 40 years—10 years' suspension period and 30 years' repayment period. The interest rate is 0.10 percent per year.
The deputy minister continued to say that for the latest loan, SMEs which cannot submit full collateral can get a loan under credit guarantee insurance system.
For the second phase project, the rules and disciplines will be amended to ensure loan access to all regions and states across the country, conformity with the national economic policies and loans go to real SMEs.
Union Parliament Speaker Mahn Win Khaing Than said those MPs who want to discuss the loan matter could enlist and the decision would be made on February 16.