Region and State Governments to manage agricultural loans and savings
Region and State Governments to manage agricultural loans and savings
Eleven Myanmar, 18 Nov 2014
URL: http://www.elevenmyanmar.com/index.php?option=com_content&view=article&id=8127:region-and-state-governments-to-manage-agricultural-loans-and-savings&c
Future agricultural loans and savings are to be managed directly by Region and State governments.
This was announced in the response of the Deputy Minister of Agriculture and Irrigation to a question asked by Aung Cho Oo of Constituency No. 11 in Bago Region about the difficulties that the farmers face in that area.
Aung Cho Oo asked the deputy minister about the tendency for agricultural loans to not be disbursed in time for farmers to use them, the difficulty of applying for these loans using Form 7, and the shortcomings of the collective responsibility system for loan disbursement.
The deputy minister said that if farmers borrowed money the previous year and repaid it fully, then they would be able to get another loan this year with the recommendation of the Agricultural Development Bank, even if they do not submit Form 7.
For those who submit their applications according to regulations, loans will be disbursed the next day, the deputy minster continued. However, for those whose applications are not filled out properly or who have not repaid previous loans, funds may only be disbursed after three of four days.
The Myanmar Agricultural and Rural Development Bank Law of 1991 must be reformed as it does not reflect the Union Government’s plans to transfer responsibilities for agricultural loans and savings to Region and State Governments in accordance with Table 2 under Section 188 of the 2008 Constitution, added Deputy Minister.
If the Farmers' Rights Protection and Improving Farmland Bill is enacted, it will provide a suitable replacement to the 1991 law, said Deputy Minister.
This was announced in the response of the Deputy Minister of Agriculture and Irrigation to a question asked by Aung Cho Oo of Constituency No. 11 in Bago Region about the difficulties that the farmers face in that area.
Aung Cho Oo asked the deputy minister about the tendency for agricultural loans to not be disbursed in time for farmers to use them, the difficulty of applying for these loans using Form 7, and the shortcomings of the collective responsibility system for loan disbursement.
The deputy minister said that if farmers borrowed money the previous year and repaid it fully, then they would be able to get another loan this year with the recommendation of the Agricultural Development Bank, even if they do not submit Form 7.
For those who submit their applications according to regulations, loans will be disbursed the next day, the deputy minster continued. However, for those whose applications are not filled out properly or who have not repaid previous loans, funds may only be disbursed after three of four days.
The Myanmar Agricultural and Rural Development Bank Law of 1991 must be reformed as it does not reflect the Union Government’s plans to transfer responsibilities for agricultural loans and savings to Region and State Governments in accordance with Table 2 under Section 188 of the 2008 Constitution, added Deputy Minister.
If the Farmers' Rights Protection and Improving Farmland Bill is enacted, it will provide a suitable replacement to the 1991 law, said Deputy Minister.