SMEs to get JICA loans in January
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Yangon - The Ks5 billion (US$3.8 million) two-step loans
The JICA gave the loans to the Myanmar Economic Bank which lends it back to SME owners through the SMIDB. Yangon is prioritised and the second priority is Bago.
A business can get a loan of up to Ks500 million.
“The JICA gives loans to the government bank which will lend to the SMIDB at 4-per-cent interest rate. The SMIDB will again loan the SME owners at an 8-per-cent interest rate. We will need to see the mortgage, of course,” said an official from the SMIDB.
The SME owners with environmentally friendly and credible business plans will be given preference with the loans.
Myanmar has some 120,000 official SMEs making up 99 per cent of the country’s firms, according to the Ministry of Industry.
