Over 1,000 businesses get K37 bln from Coronavirus Fund

LOCAL NEWS

By Nyein Nyein

A total of 1,016 enterprises have been granted K37.55 billion from Coronavirus Fund between 9 April and 2 June, according to a committee to remedy the economic impacts caused by the pandemic.

The priority sectors for the Fund of K100 billion are CMP garment business, hotels and tourism service and small and medium enterprises (SMEs). The committee has been granting the loan to the business stricken by the pandemic from the Fund, with K50 billion allocated from the country’s revolving fund and another K50 billion from the social security fund.

Regarding Coronavirus Fund, 85 businesspersons were granted K5.696 billion in the first batch, while 113 enterprises were selected for K4.495 billion in the second batch, 111 enterprises in the third batch for K3.5466 billion, 417 in the fourth batch for K15.079 billion and 290 in the fifth batch for K8.7335 billion.

The applicants approved by the committee will be screened in line with bank rules and procedures, and they are not eligible for the loan if they get sued by a bank. The remaining applications are being processed, the committee stated.

The committee was formed on 13 March and Union Minister for Investment and Foreign Economic Relations U Thaung Tun was appointed as the committee chairperson.

The committee is responsible for measures to address the negative impacts of the coronavirus pandemic situation on trade and tourism sectors; short, medium and long term measures to respond to the coronavirus crisis, together with the private sector and related associations; creation of new jobs for those employees who have been laid off at the factories; conducting vocational education to the workers; and additional measures to explore new markets to buy raw materials for CMP garment businesses in the country instead of relying on the sole market — China.

Additionally, the public and private sectors need to cooperate in setting up the supply chain on our own sources, including weaving, knitting, dyeing, and sewing factories, the committee urges. Furthermore, the committee will request the government to give tax exemption and reliefs depending on the situations of the coronavirus impacts on SMEs and to provide loans to the domestic businesses at the low-interest rate. (Translated by Ei Myat Mon)

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