The Microfinance Businesses Supervisory Committee instructed microfinance institutions (MFI) in Myanmar to ease loan collections among those who are
not able to repay during the pandemic, said U Set Aung, deputy minister of Planning, Finance and Industry.
“The committee [Microfinance Businesses Supervisory Committee] will inspect whether the MFIs follow the orders and take action if they fail to follow,” he said at
Pyidaungsu Hluttaw, the legislature, on July 22.
Myanmar authorities have instructed MFIs not to collect repayments and interest payments by force since early April. MFIs have also been encouraged to give out
buffer loans, new loans and fix the payment term for those who are unable to repay on June 14.
Lowering interest rates could reduce access to finance and hence the issue of interest rates should be approached carefully, said U Set Aung.
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The government was urged to negotiate with MFIs over payback conditions and reduce the interest rate, said Dr Maung Thin, a member of union solidarity and
development party (USDP) and Pyithu Hluttaw representative from Meiktila constituency USDP MP at Hluttaw on July 21.
As of 2020, 193 MFIs have been permitted to operate and over K2217 billion has been given out to a total of 5.7 million people, according to the government’s April record. – Translated
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Source : Myanmar Times
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