Over 97,000 Ayeyarwady farmers unable to repay loans

Writer: 
Min Thu Win Htut
Farmers do paddy growing in Ayeyarwady Region.

 

In Ayeyarwady Region, there are 97,802 farmers who are unable to repay their agricultural loans.  

Myanmar Agricultural Development Bank (MADB) resumes the suspended agricultural loan scheme this year.

The MADB in Ayeyarwady Region had to temporarily suspend its loan scheme as the disbursement of loans to the MADB by Myanmar Economic Bank (MEB) faced a delay.

Until August 30 this year, the MADB disbursed agricultural loans of Ks-286817.85 million to 287,361 farmers for 1,912,199 acres of lands. According to the reform of agricultural loan policy, farmers need to put Form-7 up as collateral to the MADB to take loans. A total of 97,802 farmers will have to pay Ks-71,881.63 million in debt to the MADB.

Than Htay Aung, Ayeyarwady Region Manager of the MADB said: “According to the new policy, farmers need to show their Form-7. Some farmers take loans from other organizations, private banks and microfinance-rs by putting up the original of Form-7. The MADB asked framers to show Form-7 when applying for agricultural loans. The bank checked the original and copy of Form-7. The bank returned it to farmers if it is true. At that time, they were ok. But this year, farmers find it difficult to take loans as the bank asks them to put up the original Form-7 as collateral. About 10 per cent of farmers are unable to take loans this year. Last year, the bank disbursed loans to more than 320,000 farmers. Around 80,000 farmers did not take loans.”