Over 10,000 enterprises apply for COVID loans in second time

More than 10,000 businesses applied for coronavirus loans in second batch. Photo: Phoe Khwar
More than 10,000 businesses applied for coronavirus loans in second batch. Photo: Phoe Khwar

By Nyein Nyein

More than 10,000 enterprises have applied for the coronavirus emergency loans for the second time, said UMFCCI General Secretary U Aye Win.
To be able to provide the government’s coronavirus emergency loans for the second time to the enterprises adversely affected by the pandemic, the applications are being accepted starting from 29 July up to 10 August. Over 1,500 applications were received through UMFCCI head office, over 7,600 through states and regions UMFCCI and over 800 through online.
This time, more than 10,000 enterprises have applied for the COVID emergency loans, and more applications were received compared to those of the first time. The first time, only over 4,250 enterprises used for emergency loans, he added. Out of 10,000 applications, 25 per cent are from the Yangon region and the remaining 75 per cent are from other states and regions, he said. The second time loans will be provided to agricultural, livestock and aquaculture sector, export manufacturing sector, import substitutes manufacturing sector, manufacturing sector involved in the supply chain from the domestic production to export sector, food production sector, overseas recruitment service sector and livelihood training school. We do not know the exact amount of the emergency loans to the priority sector, he noted. “The loans do not have limitations, including minimum and maximum amount borrowable. We will make a decision depending upon the application forms and their types of enterprise activities,” the UMFCCI general secretary stated.
To be able to receive the emergency loans in time, the officials from UMFCCI started to scrutinize on 11 August together with the officials from SMEs Department, DICA, Myanmar Economic Bank, Myanmar Agricultural Development Bank, Ministry of Education, Trade Department (Ministry of Commerce), Fisheries Department, Livestock Breeding and Veterinary Department, Directorate of Labour, Ministry of Agriculture, Livestock and Irrigation and other 20 UMFCCI-affiliated associations. These loans are being spent from a relief fund of K100 billion, with K50 billion drawn from the country’s revolving fund and the rest K50 billion drawn from its social welfare fund. The enterprises can apply for the loans with one per cent interest rate for one year. The Union Government will add K100 billion to its COVID Fund from 2019-2020 financial year budget surplus. For the first time, a total of 3,393 enterprises have received loans out of over 4,250 applications. UMFCCI provided over K101 billion for seven times, according to the announcement of the Ministry of Investment and Foreign Economic Relations. (Translated by Hay Mar)

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