Second-time K100 bln COVID Fund focuses priority sectors

Women making clothes at a cottage industry in South Dagon Township, Yangon.  Photo: Phoe Khwar
Women making clothes at a cottage industry in South Dagon Township, Yangon.  Photo: Phoe Khwar

The priority sectors for the second K100 billion from COVID Fund are agriculture and livestock enterprises, export and import businesses, and vocational schools, said U Ye Min Oo, Minister for Planning and Finance of Yangon Region, who also acts as chair of MSMEs agency and loan assessment committee.
He made the remark at the meeting of MSMEs Agency held at the General Administration Department of Yangon Region on 13 July.
The first K100 billion from COVID Fund has been granted to the SMEs stricken by the coronavirus impacts. More than 3,393 entrepreneurs engaged in CMP businesses, hotels and tourism sector and SMEs have been approved to receive K101.298 billion of the loan.
Constantly, the second batch of K100 billion from the fund is planned for those executing agriculture, livestock, export, import and vocational schools, he said.
At the present time, loans to some SMEs are delayed as they cannot provide all required docu-ments by the respective banks, he continued. Therefore, the procedures in seeking loans and financial management courses for SMEs will be conducted for SMEs in the post-COVID-19 period, he added.
Additionally, a total of 1,483 businesses from Yangon Region have received the Credit Guarantee Insurance (CGI) backed loan of K21.638 billion, according to MSMEs Agency.
Regarding two-step loan funded by Japan International Cooperation Agency, 80 per cent of the loan was earlier set to be used for fixed capital, while the remaining 20 per cent was, for working capital. Now, the agency has negotiated with JICA to grant a loan for 100 per cent working capital instead of 20 per cent.
(Translated by Ei Myat Mon)

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