KBZ Bank introduced the COVID – 19 Credit Assistance Program for SMEs to provide urgent financial relief to its existing and new SME customers

With the economic fallout from COVID-19 impacting small and medium-sized enterprises (SMEs) across Myanmar, KBZ Bank has introduced the COVID-19 Credit Assistance Program for SMEs to provide urgent financial relief to its existing and new SME customers. 

Under the program, launched on 11 June 2020, SMEs can apply for the six-month extension of current Overdraft and Term Loans, six-month deferral on Principal Loans and Interest, and Capitalization on Principal Loans and Interest for up to six months to ease the financial burden they face during this challenging period. 

These recovery financing options apply to Term, Overdraft, or JICA SME Two-Step loans obtained at KBZ Bank’s SME Banking Department. 

“For Myanmar’s small business owners of the country, the COVID-19 pandemic has become more than a health crisis. Many SMEs have been impacted financially after being forced to close their doors temporarily, and this has also affected employees and their families,” U Zaw Lin Aung, Senior Managing Director of KBZ Bank, said. 

The COVID-19 Credit Assistance Program for SMEs is aligned with the Myanmar government’s COVID-19 Economic Relief Plan (CERP). Under point 2.1.6 of the CERP, the Central Bank of Myanmar has permitted banks to restructure and reschedule existing loans extended to MSMEs that regularly pay interest and principal on a timely basis for a longer period.

With more than 90 percent of businesses in Myanmar classified as small and medium-sized enterprises, the Myanmar government has recognized that SMEs are the main driver for the country’s future national economic development. While the economic impact of the COVID-19 pandemic has yet to be quantified, it is expected that businesses, including SMEs, will bear the brunt of a reduction in demand for their products and services. The impact on SMEs will be severe, particularly because of higher levels of vulnerability and lower resilience related to their size. 

To qualify for the COVID-19 Credit Assistance Program for SMEs, existing customers should be using KBZ SME Loan Services for at least two years, engage KBZ Bank as their principal bank and have a positive repayment history as of February 2020.

For new customers, KBZ Bank will assess the applicant’s industry and business, with greater priority given to SMEs providing services and products that support COVID-19 prevention, containment, and relief efforts in the country. All applicants will be required to submit company documentation and an emergency business plan. 

To apply or find out more about the program, SME businesses can contact Relationship Manager at KBZ Bank’s SME Banking Department, or call +951373785 / +951372979 / +951372977 / +951377716 or email: smart.smebanking@kbzbank.com. 

(Myanmar Business Today: https://mmbiztoday.com/kbz-introduces-credit-assistance-program-for-smes/ )

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