The Japan International Cooperation Agency (JICA) is planning to provide loans for small and medium- sized enterprises (SME) in Myanmar, according to the vice president for the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).
“At least Ks 3 billion is set aside for the loan fund. JICA will provide the fund to Myanmar government and it will disburse the loans through local banks. No decision has been made on how much loan a small business can apply for,” Zaw Min Win, the vice president for the UMFCCI told the 11th Japan Myanmar Business Corporation Committee Meeting in Yangon.
Meanwhile, the Small and Medium Industrial Development Bank is currently offering loans to small businesses with 8.5 percent interest rate.
In 2013, the SMIDB disbursed loans of Ks 10 billion to 62 SMEs and will offer loans of Ks 20 billion this year.
According to the Ministry of Industry, there are more than 120,000 registered SMEs in Myanmar.