German International Cooperation (GIZ)
will offer 4.5 million euros (US$5.82 million) to Myanmar as an aid for
the development of its small and medium enterprises (SMEs).
“We have already signed the Letter of
Intent with GIZ in order to offer loans to SMEs,” said an official from
the Ministry of Industry.
Aye Aye Win, Assistant Director of SME
Development Department, said that 88 per cent of the country’s
businesses are SMEs. She added that the government has transformed the
Myanmar Industrial Development Banks into SME Banks in some cities, as
part of the efforts to boost the development of SMEs.
“The interest rate of bank loans is one
of the key hindrances for SMEs,” said an entrepreneur who asked not to
be named. He added that other impeding factors include loan periods
being short, not getting required amount of loans, and being unable to
provide collaterals.
In the 2012-13 fiscal year, the
government has approved 5 billion kyats (US$5.95 million) for issuing
loans to SMEs at the interest rate of 8.5 per cent.
source: Eleven Myanmar
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