The microfinance regulators in Myanmar namely the Financial Regulatory Authority (“FRD”) and its Microfinance Business Supervisory Committee (“MBSC”) had issued several directives and instructions in 2020, many of which were aimed at regulating microfinance businesses as well as supporting borrowers of micro-credit who had been affected by the pandemic. Highlights of this note Lending to […]

On 4 June 2019, the Financial Regulatory Department (“FRD”) issued a letter (“Letter”) directing International Non-Governmental Organizations (“INGOs”) and Non-Governmental Organizations (“NGOs”) which provide microfinance services to register as companies and apply for fresh Microfinance Business License (“MFI License”). MFI License issued previously Pursuant to the Letter, FRD had previously issued MFI Licenses to 3 […]

On 5 June 2019, the Microfinance Business Supervisory Committee issued Directive 1/2019 (the “Directive”) which revises the interest rates applicable to micro-credits and savings of the members. New rates of interest The Directive introduces an interest rate of 28% on micro-credit (the “New Rate”) and provides illustrations with regard to calculating the effective rate of […]