The Japanese International Cooperation Agency (JICA) to offer loans of Kyat 5 billion to small and medium enterprises (SMEs) in Yangon, Pathein and Mandalay in December

The Japanese International Cooperation Agency (JICA) will offer loans of Ks5 billion to small- and medium-sized enterprises (SMEs) in Yangon, Pathein and Mandalay in December, according to the Small and Medium Industrial Development Bank (SMIDB)

The government has agreed with the JICA to take two-step loans at an interest rate of 0.01 per cent with funds going to the government and then to domestic banks for redistribution among SMEs.

An official from the SMIDB said: “The JICA will grant loans of Ks5 billion to the SMIDB in December. The JICA will check cities for loan disbursement. We have prioritised Yangon, Pathein and Mandalay for the loan scheme.” 

SMEs must follow agreed rules, carry out environmental conservation and submit business plans to get loans. They need to put property up as collateral for the loans and secure recommendations from their regional or state government.

Interest rates for the JICA from the government are 0.01 per cent, 4 per cent from the government to the SMIDB and 8.5 per cent to the SMEs.

The JICA will grant its loans to Yoma and Kanbawza banks and the SMIDB.

Since 2012, the SMIDB said it had granted more than Ks20 billion to SMEs and will offer additional loans of Ks9.6 billion.

According to the Ministry of Industry and Commerce, there are more than 120,000 registered SMEs in the country, which account for 99 per cent of the country’s economy.

Reference: http://elevenmyanmar.com/business/three-cities-proposed-jica-loan

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