Myanmar is one of the poorest countries in Southeast Asia with 76% of the country’s poor living in rural areas and depending primarily on agriculture. Making credit and related financial services available to Myanmar’s farming population is of critical importance as it will help improve the livelihood of the population, especially the rural poor. It will also increase food production to allow scarce foreign exchange reserves to be used for investments instead of importing food to supplement shortages.
This project will increase MMK’s micro loan portfolio to $42 million by 2017. The project will also enable the number of micro loans outstanding to reach 72,000 from 25,800.
Acleda Myanmar will additionally provide longer term funding which is critically needed and in shortage for banks and micro finance institutions across the region. The project will also help Acleda Myanmar access additional long-term funding from donor and other commercial lenders and will provide the first off-shore funding in local currency to micro-finance institutions.