Germany pledges SME aid
The German Agency for International Cooperation (GIZ) will support the development of small- and medium-sized enterprises along with three Myanmar banks - the Small and Medium-sized Industrial Development (SMIDB), Kanbawza and Yoma, Parliament's Banks and
Bernd Kuzmits from Germany’s Ministry for Economic Cooperation and Development said: “Myanmar’s SMEs cannot afford to extend their businesses as they face many difficulties securing loans. As a result, those SMEs cannot create more jobs. They miss opportunities. Myanmar is implementing a project in cooperation with the government of Germany to cover losses in the fiscal sector. This move aims to ensure stability and sustainable development. SMEs are in urgent need of financial assistance.
“As a first step, we are providing financial assistance for SMEs through three local banks. As second step, necessary assistance is being provided for the upgrade of the associations which offer banking courses, like Yangon Institute of Economics and Myanmar Banks Association. As a third step, efforts are being made to exercise international fiscal standards. Finally, we will help support the emergence of better laws and procedures for the fiscal sector. Germany is cooperating with the Banks and Monetary Development Committee to implement this,” he added.
Thomas Foerch from the GIZ said: “There was transparency in selecting the three Myanmar banks. They were picked because they met banking management standards.”
The GIZ is providing technical assistances to boost SME development with the project that is due to run until the end of 2016, when other banks will be added to the programme.