Govt to inject another round of financial aid as coronavirus drags economy

By Myo Thiri Kyaw 05 Aug 2020

Myo Thiri Kyaw | DMG
5 August, Sittwe

The government said it would disburse K100 billion (US$73 million) loans to entrepreneurs across Myanmar to help them resume their coronavirus-hit businesses amid the ongoing COVID-19 pandemic. The grant will be the second of its kind.

The low-interest loan is to be doled out to local businesses in sectors including agriculture, livestock breeding, fisheries, export and import companies, food manufacturing operations, oversea employment agencies and vocational training schools in Arakan State, said Dr. Htoo Min Thein, director of the Arakan State Directorate of Investment and Company Administration.

“We don’t set an average loan for each business. The loans would be dispensed to businesses after the Economic Recovery Committee of COVID-19 scrutinised the proposals based on the extent of the enterprises. If you want K10 million, it is not sure to give you and your proposal will mainly depend on your business,” he added.

The interest rate on loans provided by the government to businessmen will be just 1% with a loan period of one year, said U Tin Aung Oo, chairman of the Arakan State Federation of Chambers of Commerce and Industry.

“Businessmen and small-sized enterprises are currently facing financial hardships due to the coronavirus outbreak. So the government’s loans are expected to enable businessmen to a certain extent,” he said.

Forty-three local businessmen in Arakan State received the government’s COVID-19 loan in April for the first time, according to the Arakan State Federation of Chambers of Commerce and Industry.

Businesspeople who have already received the government’s financial assistance in April will not be allowed to apply for the COVID-19 loans for a second time.