Myanmar Agricultural Development Bank (MADB) is unable to collect 52 per cent of outstanding agricultural loans, according to the Ayeyawady Region Government.

Htay Win, Ayeyawady Region Minister for Planning and Finance said: “From monsoon and winter agricultural loans in 2012 to monsoon and winter agricultural loans in 2017, there is an outstanding debt of K131.109 billion. It accounts for 52 per cent of the total outstanding debts nationwide. It is linked to the facts that there occurs the unbalanced ratio between savings and loans as farmers are allowed to withdraw deposits; the bank granted loans only with a copy of form-7; the farmland purchase, sale and rental are rampant; the guarantee system among farmers are weak; crop prices have declined; crops are damaged by the climate changes; the weaknesses of some farmers and the misappropriation of funds by some members of loan scrutinizing committee; and there is no effective action against those who fail to repay their loans. The MADB will draft a plan to collect outstanding agricultural loans from November, 2018 to March 2019. The region government has started scrutinizing outstanding debts in each township in November.”

The MADB has taken action against some members of loan scrutinizing committee, for the misappropriation of funds.