Yoma Bank sees disbursement of loans to small and medium enterprises as a crucial part of its service, U Theim Wai, chairman of First Myanmar Investment told Mizzima on December 17.
“We have enjoyed a remarkable achievement in disbursing loans to SMEs. It is an important job of Yoma Bank,” he said.
Yoma bank is a subsidiary of FMI.
Yoma Bank resumed its banking services in the fourth quarter of the 2013-14 fiscal year. The bank must be a reliable resource for SMEs in disbursement of loans, the chairman said at the 22nd anniversary celebration of the founding of FMI.
When assessing the possible granting of a loan, Yoma Bank looks at the work of the SME, plans and arrangements for paying back the loan, and the submitssion of property to guarantee the loan.
U Theim Wai said that mortgages are their second priority and that they could be flexible in considering reducing mortgage payments if the debtor could provide a convincing plan.
Entrepreneurs tend to complain about the problem of obtaining loans from banks. Some claim the Small and Medium Industrial Development Bank disburses loans to SMEs at a monthly interest rate of 8.5 percent and its efforts cannot benefit local SMEs.
U Hnin Oo, vice president of the Myanmar Fisheries Federation, told Mizzima that mortgages remain the priority for local banks, whereas high interest rates and lack of long-term disbursement cannot contribute to the improvement of SME industries in Myanmar.