Myanmar microfinance at 30% interest rate

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myanmar microfinanceA new private bank in Myanmar, Myanmar Microfinance Bank, is currently awaiting the central bank’s approval to commence operations.

The bank will provide microfinance loans to low-income citizen at what it says “half the current interest rate for small loans”, which is still 30 per cent per annum for loans up to a maximum of 30,000 kyat ($33).

Shares of the bank will be sold to the public in tranches of 100,000 kyat, with the central bank being among the buyers. Interbank rates in Myanmar currently stand at 10 per cent and will likely be reduced to 6 per cent.

A joint research by Michigan State University and the Myanmar Development Resource Institute found that 35 per cent of rural people in Myanmar need loans to buy a constant supply of food, while 50 per cent face food insecurity at least two months a year.

To set up its planned microfinance programme in 60,000 villages across the country in order to fight rural poverty, Myanmar will need up to $3 billion, the country’s Cooperatives Minister said at an event in the capital Naypyitaw on July 6.

 

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Reading Time: 1 minute

A new private bank in Myanmar, Myanmar Microfinance Bank, is currently awaiting the central bank’s approval to commence operations.

Reading Time: 1 minute

myanmar microfinanceA new private bank in Myanmar, Myanmar Microfinance Bank, is currently awaiting the central bank’s approval to commence operations.

The bank will provide microfinance loans to low-income citizen at what it says “half the current interest rate for small loans”, which is still 30 per cent per annum for loans up to a maximum of 30,000 kyat ($33).

Shares of the bank will be sold to the public in tranches of 100,000 kyat, with the central bank being among the buyers. Interbank rates in Myanmar currently stand at 10 per cent and will likely be reduced to 6 per cent.

A joint research by Michigan State University and the Myanmar Development Resource Institute found that 35 per cent of rural people in Myanmar need loans to buy a constant supply of food, while 50 per cent face food insecurity at least two months a year.

To set up its planned microfinance programme in 60,000 villages across the country in order to fight rural poverty, Myanmar will need up to $3 billion, the country’s Cooperatives Minister said at an event in the capital Naypyitaw on July 6.

 

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