YANGON, Dec. 21 (Xinhua) -- The World Bank's resident office in Yangon announced on Wednesday provision of 100 million U.S. dollars' credit to support Myanmar's financial sector development Project.
The project includes reform to increase the provision of banking services and access to loans and financial products across the country as well as developments of nascent microfinance and insurance sectors.
The project will help increase the access to finance for households and small and medium enterprises by reforming state-owned banks, strengthening the legal frameworks and modernizing the financial sector infrastructure, said U Man Man Win, deputy minister for Planning and Finance.
The financial sector of the country does not yet effectively meet the demand of the country's growing economy. Fewer than 30 percent of adults of the country can access financial services and the rate is even lower in rural areas. Businesses identify the lack of access to finance as the largest constraint to doing business in the country, he added.
Ulrich Zachau, the World Bank country director for Southeast Asia, said that improving access to credit will benefit farmers, small businesses and low-income households as it will create higher incomes and more jobs.
The terms for the credit of International Development Association (IDA) include a maturity of 38 years with a grace period of six years and a zero interest rate.
