Signing of financing agreement, refinancing agreement for second phase KfW grant fund

Director-General Daw Si Si Pyone and German KfW Development Bank Director Ms Eva Schneider exchange documents at the signing ceremony in Nay Pyi Taw yesterday. Photo: MNA
Director-General Daw Si Si Pyone and German KfW Development Bank Director Ms Eva Schneider exchange documents at the signing ceremony in Nay Pyi Taw yesterday. Photo: MNA

A signing ceremony for the financing agreement and refinancing agreement for the second-phase German KfW Development Bank grant fund of 10.85 million euros was held at the Ministry of Planning and Finance, Nay Pyi Taw, yesterday morning.
According to the terms of the financing loan, the participating bank will be given a loan at an interest rate of 3.5 per cent per annum, with 12 years grace period and three years repayment period. The bank will be permitted to charge five per cent management and bank charges while providing loans to small and medium enterprises (SMEs) at 8.5 per cent interest per annum.
Co-operative Bank Ltd (CB Bank) and Myanmar Apex Bank will provide loans to the SMEs. The refinancing agreement was signed by Ministry of Planning and Finance Deputy Minister U Maung Maung Win on behalf of the Myanmar government, Managing Director Daw Naw Eh Hpaw on behalf of CB Bank and board of directors member Daw Thida Myo Aung on behalf of the Myanmar Apex Bank.
The financing agreement was signed by Treasury Department Director-General Daw Si Si Pyone on behalf of the Ministry of Planning and Finance, and German KfW Development Bank Director Ms Eva Schneider on behalf of the German government. A separate agreement was signed by Treasury Department Director-General Daw Si Si Pyone on behalf of the Ministry of Planning and Finance, German KfW Development Bank Director Eva Schneider on behalf of the German government, Managing Director Daw Naw Eh Hpaw on behalf of CB Bank and board of directors member Daw Thida Myo Aung on behalf of Myanmar Apex Bank.
The German government had provided 4.45 million euros as the first-phase grant fund for SME development in Myanmar, and this is the second phase grant fund.
This fund will enable low interest loans for SMEs that will support their development. —Myanmar News Agency

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