Myanmar to get loan from Singapore, Vietnam for SME development

YANGON (Xinhua) - Myanmar will get a $50-million loan from Singapore and Vietnam for the development of its small- and medium-sized enterprises (SMEs), Myanmar authorities said on Sunday.

The loan, to be obtained in the next fiscal year starting April 2015, will be $30 million from Vietnam and $20 million from Singapore, according to a loan agreement signed with the loan providers.

The loan will be distributed to the SMEs through Myanmar's Small and Medium Industrial Development Bank at an interest rate of 4 percent, according to the SME administration.

During the current fiscal year, the bank had provided $20 million to the SMEs.

According to the Ministry of Industry, there are more than 120, 000 licensed SMEs in Myanmar, or over 99 percent of the industries across the country.

Meanwhile, Myanmar is planning to map out a plan for the development of SMEs with the help of a German foundation - the Friedrich Naumann Foundation (FNF).

The plan covers capacity building, workshops and conference, study tours as well as lectures about democratic reform.

Under a two-year government aid program in May, the German International Cooperation has also assisted three Myanmar private banks in financial techniques for the development of SMEs.

Myanmar's industrial sector contributes about 20 percent to its gross domestic product with the private sector accounting for 92. 36 percent.