The access to financial services for small and medium enterprises (SME) improved in the first quarter of the 2018-2019 fiscal year while the banking sectors credit growth in slow

While the banking sectors credit growth is slow, access to financial services for Small and Medium Enterprises (SME) has improved through the first quarter of the 2018-2019 fiscal year. According to World Bank officials at the press conference on Myanmar Economic Monitor report held on June 18.

In lending, banks have become stricter which has slowed lending activities in the 2018-2019 fiscal year.

Growth in credit to the private sector dropped by 21 percent in the first quarter of the 2018-2019 fiscal year. However, despite overall slow credit growth, there are signs of progress in financial access for small and medium enterprises, year on year growth is at 80 percent in the first quarter of the 2018-2019 fiscal year.

As of January 2019, five million clients have received microfinance loans. Microfinance is growing rapidly according to the World Bank.

During the first quarter of 2018-2019 Fiscal Year, the loans provided by microfinance service providers reached K1.3 trillion, an increase from K0.8 trillion from the same period last year.

The Central Bank of Myanmar, in early 2019, allowed foreign banks to provide loans to SMEs the same way local banks do.

Around 90 percent of local manufacturing businesses are small and medium enterprises which contribute to around 50 percent of the country’s job creation.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/access-financial-services-improve-smes-first-quarter )

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