May 19, 2013

Credit Information Bureau to be formed

Myanmar will form a Credit Information Bureau to check on the background of borrowers for financial loans, senior adviser San Thein of the Small and Medium Enterprise Development Bank said.

"The bureau will be formed with the assistance of Singapore and it is to eliminate the difficulties in financing for SME's owners," he told the ASEAN Economic Community Workshop in Mawlamyaing on May 18.

San Thein added that the banks would finance up to 60% of the collateral of SME's investors. There would be no loan for an investor who was not able to provide any collateral. The goal of the bureau was to help for those are not eligible to get a loan.

At least 90% of the SMEs in industrial sectors stopped running the business due to inadequate finance, according to the industry ministry's statements.

"Lack of finance results in losses to both the government and business owners. Credit Bureau is a must to form to develop SME sectors," San Thein said.

There are 126,237 small and medium enterprises in Myanmar.

Source: Eleven Weekly Media