The Myanmar Cooperatives Society will extend funds totaling K600 billion as loans to farmers for the winter and summer harvest this year.

The loans are given out twice a year to farmers who are members of the society. “The funds are loaned to us by the Chinese. We then extend these funds to our members at 1.5 percent per month,” said U Myo Aung, director of Myanmar Cooperatives Society.

He said the interest rate this year is higher than last year’s rate of 1.15pc per month. “We’ve increased the interest rates because the exchange rate has become dearer. But the current rates are still low, so most of the borrowers should not have a problem repaying the loan,” U Myo Aung said.

The loans are expected to cover agriculture-related equipment and technology or better seeds to improve crop quality.

Farmers must repay the loans by the end of June, after which funds will be extended to a new batch of farmers.

There are 4600 cooperative groups across the 307 townships in Myanmar. Each group comprises at least five people.