Additional loans to be disbursed to profit-making SMEs

Writer: 
Nilar

 

Additional loans will be disbursed to profit-making small and medium-sized enterprises after a review of their investments and progresses, said Union Minister for Industry Khin Maung Cho.

For the business expansion of SMEs, the government is carrying out the issuance of recommendations for the availability of loans from respective banks and the submission of loan applications under the Credit Guarantee Insurance (CGI) system.

Till February 15, the Co-operative bank disbursed Ks 2,283 million loan to 225 SMEs, the Small and Medium Industrial Development Bank, Ks 200 million to 10 SMEs and Kanbawza Bank, Ks 295 million to four SMEs.

Under the Japan International Cooperation Agency’s two-step loan scheme, six private banks have disbursed Ks 57.634 billion which is equivalent to 5,000 million Japanese Yen. Till February 25, the disbursement of loans to 297 SMEs amounted to Ks 61.87 billion.

Due to some limitations, loans cannot be disbursed to all SMEs. The authority will scrutinize the loan disbursement scheme systematically to ensure the effective utilization of loans by SMEs and the profitability.

Union of Myanmar Federation of Chambers of Commerce and Industry suggested that the loan disbursement scheme should prioritize SMEs among the priority sectors under the National Export Strategy.