August 20, 2016

Japan and Denmark to give mortgage free loans to SMEs

Workers make slippers at a cottage industry in Mandalay.
Workers make slippers at a cottage industry in Mandalay.

“Japan and Denmark will give mortgage-free loans to small and medium enterprises(SMES),” said director-general Daw Aye Aye Win of the industrial inspection and administration department of the Ministry of Industry.
Loans will be provided based on the Business Plan as well as on the market situation, environmental situation and export potential.
They will give the loans to small and medium enterprises that have the potential to succeed.
“They will check the feasibility of the project, the enthusiasm and passion on the part of the businesspeople and the potential. They will also assess the environmental impact,” continued by Daw Aye Aye Win.
The Japan International Co-operation Agency (JICA) will provide USD 45 billion in loans for the development of small and medium enterprises. Denmark is discussing the amount of the loan pool, it was reported. At the moment, 90 per cent of Myanmar Businesses are SMEs. As local banks require SMEs to present mortgages, the enterprises are finding it difficult to access to bank loans.
The Small and Medium Industrial Development Bank (SMIDB) is set to provide USD 20 billion in loans but only 11 billion can be given because the rest cannot present mortgages.




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