Myanmar Apex Bank (MAB) will provide a total of K57 billion in loans to local Small and Medium Enterprises (SMEs). The bank will provide the loans through five microfinance companies, namely Fullerton Finance (Myanmar), Proximity Finance, Vision Fund Myanmar, Early Dawn Microfinance and Pact Global Microfinance, said U Kyaw Ni Khin, CBO of MAB Bank.

The five microfinance companies and MAB signed the agreement at MAB’s headquarters on October 30, 2019. To obtain approval from the related ministry, the bank has prepared details about rates and methods of providing and collecting loans. There are over a dozen of microfinance companies that work with MAB.

MAB has also proposed a plan to provide K5-10 billion in loans through other micro financing institutions, but has yet to receive approval from the government. In addition to these loans, MAB is also providing loans to SMEs using Germany’s Development Bank aid and JICA’s two-step loans, in which JICA lends money to banks, who provide loans to SMEs using JICA’s loan.

Source: Myanmar Business Today

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