SMEs to apply for tourism loans from MTB

Tourism-related small and medium-sized enterprises (SMEs) can now apply for loans at Myanmar Tourism Bank (MTB) through the 11 associations under the Myanmar Tourism Federation (MTF) as collateral and insurance, according to the MTB Head Office. There are 11 associations in Myanmar tourism industry in the pandemic period. The Memoranda of Understanding (MOUs) were signed between the team in each sector. The working processes are being taken step by step to provide the loans to SMEs under these associations.

The MTB Head Office has a loan department. SME businesses can directly contact the MTB’s loan department. Now, the department is also providing loans to the team’s small businesses. However, it is more convenient to reach MTB through the relevant associations. The department again postponed the interest payment period and deferred the repayment dates during the pandemic period. When the tourism businesses resume in the aftermath of COVID-19, the department will provide more loans to the SME businesses, said the MTB deputy managing director.

MTF has 11 associations related to the tourism sector, including souvenir sale shops, hotel associations, and restaurant shops. MTB is providing loans to SME businesses under these 11 associations starting from last year. MTB firstly offered K 20 million loans to SMEs without the collaterals. The loans will be provided depending upon the collateral application. Under the Central Bank of Myanmar, the interest claiming period will be postponed in the pandemic period. At present, the loan interest rate of MTB is 10 per cent. MTB Head Office was opened on Pyay Road, Kamayut Township, Yangon. According to MTB Head Office, the bank has already been opened up to six branches across the country.

Source: The Global New Light of Myanmar


Domestic gold price down in global plunge

According to the gold prices skimming in the global market, the gold market price in Myanmar has dropped to K1,318,800 per tical (0.578 ounces, or 0.016 kilogrammes) the domestic gold market. Although the global gold price stood at US$1,955 per ounce on 6 January, it plunged to $1,828 per ounce on 16 January with a decrease of over US$100 in 11 days as per market data. Similarly, the local gold price has fallen as a result of the situation in the international market.

The local gold price was only around K1,336,000 per tical on 6 January, but it spiked to K1,318,800 per tical on 16 January. Within 11 days, the domestic gold price plunged by K12,000 per tical. The local dollar exchange rate was also on the downside. At present, the local dollar exchange rate stands at around K1,339 per dollar. At the end of last year, the local gold reached the lowest K1,310,500 (2 September) and the highest level of K1,314,000 (1 September). In October, the rate ranged between K1,307,800 (30 October) and K1,316,500 (21 October).

The pace changed between the highest of K1,317,000 (9 November) and the lowest of K1,270,000 (30 November). In December, the pure yellow metal price moved in the range of K1,280,000 (1 December) and K1,332,000 (28 December). With the global gold prices on the uptick, the domestic price hit fresh highs in 2019, reaching K1,000,000 per tical between 17 January and 21 February, crossing K1,100,000 (22 June to 5 August), climbing to K1,200,000 (7 August-4 September), and then reaching a fresh peak of K1,300,000 on 5 September, according to the gold traders.

Source: The Global New Light of Myanmar