PACT Global Microfinance Fund (PGMF), an international nongovernmental organization (INGO) has
failed to transform into a company in time and so their microfinance business activities will be suspended and the liquidation processes will be proceeded, according to the statement released by Microfinance Business Supervisory Committee of the Ministry of Planning and Finance on Thursday. The proposal to do such action was submitted to the committee on 11-7-2023 and the committee will carry out that case as per the provisions of Microfinance Business Law. The committee granted microfinance business licences to the local and foreign companies, partnership firms, INGOs and NGOs that register under the Myanmar Companies Law, Registration of Associations Law under Section 13 of 2011 Microfinance Business Law (Pyidaungsu Hluttaw Law No 13/2011) by reviewing them. The US Delaware-based INGO called Pact Global Microfinance Fund (PGMF) made registration as an INGO at the Ministry of Home Affairs in 2012 and applied for a work licence to provide microfinance services at Microfinance Business Supervisory Committee.
The committee granted a permit with business licence No 0022/2012 on 22-6-2012. Under Registration of Associations Law 2014 and 2022, the organizations that register as INGOs and NGOs and seek business licences are not allowed to operate financial businesses. Therefore, the committee instructed the INGOs and NGOs to transform into cooperating entities in 2018, the statement said. A total of 180 microfinance organizations provide microfinance services to over 4.496 million members in 267 townships, 2,308 wards and 27,773 villages of 15 regions/states with microfinance business licences in Myanmar until May 2023. Currently, 179 microfinance organizations that receive licences from the committee offer microfinance services across the nation.
Source: The Global New Light of Myanmar