August 19, 2016

Over 300 SMEs late with loan repayments to SMIDB

Small and Medium Industrial Development Bank (SMIDB) has announced that 300 Small and Medium-sized Enterprises (SMEs) have outstanding repayments for the 2015-16 fiscal year.
K3bn of K10bn issued to SMEs in the 2014-15, 2015-16 FY has reportedly been repaid, with K6bn remaining to be repaid.
“It’s time for these loans to be repaid. It’s not that these entrepreneurs aren’t in a position to repay the loans. As such, they’ve been given another year in which to pay off their debts,” said U San Maung, managing director of the SMIDB.
SMEs which are yet to repay loans have until the end of the year.
“The loans taken by SMEs carry an interest rate of 8.5 per cent, in which we have to pay 8.25 per cent interest to the State-owned bank from which we originally procured the money. As such, it renders our profit margin at just 0.25 per cent, which is really ruining our business,” said Dr Than Htun, chair of the SMIDB.
The sum of credit loans issued to Myanmar SMEs is reportedly part of a K30bn purse that the SMIDB procured from the State-owned Myanma Economic bank. SMIDB has owed K8.42 billion to the Myanma Economic Bank this FY.—Myitmakha News Agency


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