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Questions arise over cost, accessibility of two-step loans

Despite the important role small and medium enterprises (SMEs) play in the economy, repeated requests for more affordable loans and easier access to financing remain a challenge for the sector. One avenue for SMEs to access financing in Myanmar is via funds provided by official development assistance organisations such as Japan International Cooperation Agency (JICA). […]

Central Bank permits loans without collateral at 16pc interest rate

Myanmar banks have been permitted to extend loans without the need for collateral at a maximum lending rate of 16 percent, the Central Bank of Myanmar (CBM) announced in a directive issued yesterday. The measures will take effect on February 1. Banks will be permitted to charge up to 16pc to loan money if borrowers […]

Despite President’s pledge, credit still inaccessible for SMEs

Myanmar will launch its first credit bureau within the next month, President U Win Myint said during his Myanmar New Year speech last week. But industry insiders warn that the move would not bring immediate benefits to the country’s small and medium enterprises (SMEs). According to the President, the inaugural credit bureau should commence in […]

Accounts must be in order for SMEs to qualify for loans

The lack of proper accounts, financial statements and a solid business plan is one of the biggest obstacles to small and medium enterprises (SMEs) qualifying for loans, banking officials said at a recent discussion on access to capital organised by MFITRIX, a financial training school. “When obtaining loans, the banks need to review each applicant’s […]

Company registration fees to halve from April 1, more SMEs expected

Company registration fees for small and medium enterprises (SMEs) will be halved from K500,000 to K250,000 from April 1 onwards, according to a statement issued by the Directorate of Investment and Company Administration (DICA) Tuesday. The latest move comes after DICA, together with the Ministry of Planning and Finance halved company registrations fees for private […]

Japanese investor interest in Myanmar still high despite lower FDI

The Japanese remain interested in expanding their presence in Myanmar despite lower investments in recent years compared to before and a refugee crisis unfolding in northern Rakhine. At the 13th Joint meeting of the Myanmar-Japan CCI Business Cooperation Committees in Yangon on October 23, the new Investment Law, development of small and medium enterprises (SMEs) […]

Central Bank of Myanmar approves loans without collateral

Local banks are now permitted to extend loans without the need for collaterals, U Set Aung, Deputy Minister at the Ministry of Planning and Finance, told The Myanmar Times at the 5th Asia SME Conference in Naypyitaw on October 14. “The Central Bank of Myanmar (CBM) has allowed local banks to provide loans without movable […]

Improved financial practices crucial for small business

Access to finance is frequently identified as the largest barrier for small and medium enterprises, but often they do not have their own fiscal house in order to receive this finance. Small and medium enterprises (SMEs) must improve their reporting and accounting framework in order to inspire confidence in banks, according to Thomas Foerch, working […]

IFC signs second convertible loan with local bank

The World Bank’s International Finance Corporation (IFC) will issue a US$7 million convertible loan to Myanmar Oriental Bank (MOB), to help finance small and medium enterprises (SMEs). This is the second such loan issued by the IFC in Myanmar – last September it signed with Yoma Bank for a $5 million convertible loan, also to […]