Sustainable financing of micro, small and medium-sized enterprises II

completed

Decades of repressive financial sector policy and a banking crisis in 2003 have led to a significant weakening of the financial system in Myanmar. The formal banking system is therefore very small. The consequences are minimal outreach (customer reach), weak financial institutions, a rudimentary range of products and underfinancing of the SME sector. This is offset by high demand. The aim of the project is to support the formal banking sector in Myanmar in providing small and medium-sized enterprises (SMEs) with sustainable and needs-based financing. The FC grant of EUR 9 million will support established local banks, the Co-Operative Bank Ltd. (CB Bank) and the Myanma Apex Bank (MAB), which were identified as part of a feasibility study and due diligence, in professionalizing their business operations under the project and expanding their SME lending. In addition, EUR 1.85 million is earmarked for the Myanma Apex Bank as an accompanying measure for capacity expansion. The CB Bank will already be supported in the first phase by an accompanying measure worth EUR 1.15 million. The design of the measure will be implemented closely with the TC measure for bank promotion and financial system development. On the basis of a common module objective and a common FC/TC indicator, close cooperation is planned with regard to the development of SMEs and joint training activities for the financial sector in Myanmar.