Over 120 coronavirus-hit businesses receive loan in Mandalay Region

LOCAL NEWS

More than 400 coronavirus-hit businesses from Mandalay Region have applied for emergency Coronavirus Fund and 123 of them have been approved to receive the loan so far, said an official of the Mandalay Region Chamber of Commerce and Industry.
“A total of 417 businesspersons applied for the loan at Mandalay Region Chamber of Commerce and Industry (MRCCI). Some applied through an online platform. As the Fund to enterprises battered by the pandemic is set at K100 billion and the loan granted has not reached its fund limit of K100 billion, there is still hope for businesses. During the pandemic, the fund will contribute the businesses a lot. Furthermore, the interest rate of 1 per cent for a one-year period is extremely low. The businesses approved for the loan includes food industry, weaving business, hotels and tourism enterprise, private schools and gems and jewellery business,” said MRCCI general secretary U Okkar Kyaw.
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.
Regarding the 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 priority sectors of K100-billion fund 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 welfare fund.
The eligibility for the maximum amount of emergency Coronavirus Fund can vary depending on the workforce in factories, said UMFCCI general secretary U Aye Win.
Some businesses shut down during the early outbreak. The emergency loan aims to ease the economic burden faced by the virus-stricken businesses, and not to expand the business and put capital for businesses. Mainly, the government intends to help the business keep operations and the workers get the salary for at least three months.
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.—GNLM (Translated by Ei Myat Mon)

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