Govt to disburse second COVID loan in September last week

LOCAL NEWS

By Nyein Nyein

The second batch of COVID-19 loan will be paid out to the businesses stricken by the coronavirus impacts in the last week of September, said U Aung Naing Oo, Permanent Secretary of the Ministry of Investment and Foreign Economic Relations (MoIFER). At present, the loan applications are being screened, and about 1,000 businesses will be provided with the second COVID-19 loan for the first time in the last week of September. “We will start to disburse the loan for the first time. Approximately 1,000 loan applications will be approved,” the MoIFER permanent secretary said.
The COVID loan applications by the businesses stricken by the coronavirus impacts were received between 29 July and 10 August. Over 7,600 businesses from the regions and states other than Yangon manually applied for the loan at the relevant offices. The federation received more than 800 online applications. More than 1,500 businesses were sent loan applications to UMFCCI office in Yangon. Over 10,000 businesses put in the loan application in the second batch of the COVID loan, and 75 per cent of them are from the regions and states outside Yangon, which accounts for 25 per cent of the applications. The priority sectors for K100 billion from the second batch of COVID loan are agriculture and livestock enterprises, manufacturing businesses, import-substitution businesses, food and beverage businesses, overseas employment agencies, export and import businesses, and vocational schools.
The 2019-2020 additional budget of K100 billion is to be put into the second COVID fund to remedy the businesses hit hard by the pandemic.
The government started the first COVID fund to the business stricken by the coronavirus impacts, with K50 billion allocated from the country’s revolving fund and another K50 billion from the social welfare fund. The loan is set to pay off within one year, at one per cent of the interest rate.
In the first batch, more than 4,250 businesses applied for the loan and 3,393 of them received the loan in line with the loan procedures. Over K101 billion have been disbursed under seven batches, announced the Ministry of Investment and Foreign Economic Relations. (Translated by Ei Myat Mon)

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