To promote Myanmar’s agriculture sector, Department of Cooperatives in the Ministry of Agriculture, Livestock and Irrigation provides loans to assist farmer coops12 ตุลาคม 2560
Since September 2010, when the Union Solidarity Development Party-led government took office, a total of K522bn has been granted in loans to promote the country’s agriculture under the aegis of the Department of Cooperatives in the Ministry of Agriculture, Livestock and Irrigation.
During this period, one of China’s three international banks, Exim Bank of China, provided $400m in loans to Myanmar’s agriculture sector. Of this total, K522bn is being managed by the Department of Cooperatives.
“The Chinese loans, granted three years ago, are for a ten-year period . China is also providing another type of loan to enable farmers to buy machinery under a hire purchase system,” U Aung Thaung Myint, Deputy Director of the Department of Cooperatives, said.
The loans aim to empower independent farmers by providing the capital required to purchase modern agricultural equipment such as tractors, combine harvesters, rice transplanters, and power tillers.
Under the hire purchase system, loans provided by the Department of Cooperatives for buying farm machinery are for a six month period.
In order for the Department of Cooperatives to bring about modernization of the agricultural sector by contributing loans to individual farmers more easily, it has organised the loans into three groups: K600,000 to K1.2m with three to five years loan return period, K300,000 with three years loan return period, and K200,000 with three years loan return period in third group.
“The monthly interest rate is 1.5 per cent for the average loan. If the loan amount is K40m, collateral such as a land ownership document is needed,” Deputy Director U Aung Thaung Myint said.
The Exim Bank of China’s loans to the Department of Cooperatives are subject to 4 per cent annual interest.
K522bn have been loaned to 3 million members from 35,000 private cooperative associations around the country. There are more than 40,600 co-operative associations altogether in Myanmar, with each having at least five members.
(Myanmar Business Today: https://www.mmbiztoday.com/articles/loans-assist-farmer-coops )