Myanmar Microfinance Forum was took place in Nay Pyi Taw which financial inclusion for rural development and poverty reduction

Myanmar Microfinance Forum took place in conjunction with MMFA Annual General Assembly in Nay Pyi Taw, Tuesday.

 The forum was led by Myanmar Microfinance Association (MMFA).

At the forum, Union Minister for Planning and Finance gave an opening remark. In his speech, the Union Minister said that the Financial Inclusion becomes one of the important tools for implementing in the process of rural development and poverty reduction and microfinance businesses have been gaining momentum in areas like the dry-zones and highlands by the support of UNDP, Human Development Initiative Program since 1997. As of now, 198 MFIs have been granted licenses to operate microfinance activities, including 3 INGOs, 15 NGOs, 112 Local Companies, 53 Foreign Companies and 6 Joint Ventures.

According to the Ministry, there are a total of 198 institutions in the MMFA and the microfinance loans intend to low income people.

Deputy Minister, Ministry of Planning and Finance, H.E. Maung Maung Win said “The low income people are distant to take loans from banking services. They can take loans through microfinance companies. The loans are being disbursed up to 10 million kyats to an individual and each. 198 associations have already disbursed microfinance loans to over 4 million family members. The loans go to multi-sectors such as agriculture, breeding, grocery shops and handicraft works.”

Microfinance Institutions have been operating in the States and Regions including townships and villages with a paid up capital amounting 578 billion kyats to support more than 3.3 million active clients with total loan 1,702 billion kyats and total savings 294 billion kyats.

Vice-President (2), Myanmar Microfinance Association, Myo Nyunt said “We reduce the interest rate from 30% to 28% as of June 1st. The investment rate of the clients increased to 50 percent during 3 years and the clients also increased to 3.3 million representing 15.5 million population.”

After the enactment of Microfinance Business Law on 30th November 2011, formal microfinance businesses came into action within a short period. Currently, the total amount of microfinance loans are 1.59 % of the Country’s GDP and 6.32 % of the total amount of national loans. The total amount of active clients in the Microfinance Institutions is 9.62 % of the Nation’s adult population, according to the Ministry of Planning and Finance.

(Myanmar International TV Channel: https://www.myanmaritv.com/news/microfinance-forum-financial-inclusion-rural-development-and-poverty-reduction )

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