MADB plans to lend over Ks2 trillion to farmers in 2018-19 FY
MADB plans to lend over Ks2 trillion to farmers in 2018-19 FY
Eleven Myanmar, 26 Nov 2018
URL: https://elevenmyanmar.com/news/madb-plans-to-lend-over-ks2-trillion-to-farmers-in-2018-19-fy
Myanmar Agriculture Development Bank (MADB) is planning to lend over Ks2 trillion via two step loans from Myanmar Economic Bank to farmers in 2018-19 FY.
Soe Win, Union Minister for Planning and Finance went to the head office of the MADB in Yangon to inspect operations regarding the loans. Min Thu, Director General of the MADB, presented their plan to the union minister to lend Ks2.018 trillion to farmers in 2018-19 FY.
The MADB formerly lent only agriculture loan and now are allowing two step loans from Japan International Cooperation Agency (JICA) from 2017 and from the MEB from 2018.
The bank lent Ks45.017 billion from the JICA’s loan to 1,193 farmers from 129 townships in 12 states and regions and Ks2.603 billion from the MEB’s loan to 242 farmers from 52 townships.
The bank said they are lending money for the farmers to buy farming tools and trucks and the priority of the loan is to buy farming tools.
The bank will hand out 25 per cent of the cost of farming tools and trucks.
“If the farming machine is worth Ks30 million, they will have a maximum Ks7.5 million loan,” said Assistant Manager Thet Thet Lwin from the MADB (head office).
According to the two step loan program from the JICA, each farmer can have Ks50 million loan and each group will have Ks500 million loan for 40 years including ten-year pending period. The amount of the loan will be about Ks180 billion.
“Every farmer and group will not receive the loan. We have criteria to decide the loans such as requirement of the loan, the business of the borrowers and probability to repay,” she said.
The two step loan from the JICA to develop the farming sector and rural areas will be used to implement as a 40-year project.
Soe Win, Union Minister for Planning and Finance went to the head office of the MADB in Yangon to inspect operations regarding the loans. Min Thu, Director General of the MADB, presented their plan to the union minister to lend Ks2.018 trillion to farmers in 2018-19 FY.
The MADB formerly lent only agriculture loan and now are allowing two step loans from Japan International Cooperation Agency (JICA) from 2017 and from the MEB from 2018.
The bank lent Ks45.017 billion from the JICA’s loan to 1,193 farmers from 129 townships in 12 states and regions and Ks2.603 billion from the MEB’s loan to 242 farmers from 52 townships.
The bank said they are lending money for the farmers to buy farming tools and trucks and the priority of the loan is to buy farming tools.
The bank will hand out 25 per cent of the cost of farming tools and trucks.
“If the farming machine is worth Ks30 million, they will have a maximum Ks7.5 million loan,” said Assistant Manager Thet Thet Lwin from the MADB (head office).
According to the two step loan program from the JICA, each farmer can have Ks50 million loan and each group will have Ks500 million loan for 40 years including ten-year pending period. The amount of the loan will be about Ks180 billion.
“Every farmer and group will not receive the loan. We have criteria to decide the loans such as requirement of the loan, the business of the borrowers and probability to repay,” she said.
The two step loan from the JICA to develop the farming sector and rural areas will be used to implement as a 40-year project.