16 Oct 2017
MYANMAR: Collateral Requirement Waived to Ease Access to Credit for SMEs
Local banks in Myanmar will now be allowed to offer loans without the need for their potential borrowers to first pledge their assets as collateral. The Central Bank of Myanmar has, however, stated that banks must first have adequate risk management measures in place before implementing this change to their lending policies.
The move comes in the wake of increasing criticism of strict lending terms of Myanmar’s banks when it comes to extending credit. Therefore, the Myanmar government expects the change to ease access to credit for businesses in the country, especially SMEs.