August 19, 2016

SMIDB to borrow US$30million from Viet Nam bank

Small and Medium Industrial Development Bank (SMIDB) will take US$30million loans from a bank based in Viet Nam so that they can provide loan to those who are engaged
in small and medium sized enterprises (SME), it is learnt from SMIDB.
The interest rate of the loan borrowed from Viet Nam bank is 3 to 4 per cent per annum, and SMIDB will lend this loan to the SME entrepreneurs, said Daw San San Yee, a member of the board of directors of SMIDB.
We have a plan to effectuate the development of SME. Most of the foreign banks have decided to offer loans to SME entrepreneurs with an interest rate of 3 or 4 per cent while some have been managing to set the interest rate of the loan at 5 to 8 per cent. The interest rate of the local banks is usually 12 per cent per annum. Therefore, the interest rate of the foreign banks is lower than that of the local banks.  The foreign banks aim to offer the monetary assistance to the local SME businessmen with a small profit margin, she added.
Currently, the exchange rate is being observed to take the loan from Viet Nam. SMIDB will take the prompt action to be able to provide the loans.
We’ve been negotiating to receive the low-interest loans from Viet Nam bank. Now, we can offer only 8.5 per cent of interest to SME entrepreneurs. But, we will reduce the interest when the interest set by Viet Nam bank can be reduced, said U San Maung, the managing director of SMIDV.
SMIDB have taken Ks30billion from Myanmar Economic Bank to lend loans the SME businessmen. Currently, the loan of Ks21.58billion has already been offered to them while Ks8.42billion remains left to provide loans in this fiscal year of 2016-2017.—200


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