Myanmar Agricultural Development Bank (MADB) for Tanintharyi Region has made public losses incurred during the previous 2015-16 fiscal year in the form of K737.26 million in non-performing loans.
“We’ve never experienced such losses in the last 62 years. The last fiscal year was the first time we’ve suffered a loss. The main factor behind the incurred losses is low interest rates. Interest rates are only four percent. And then from within the four percent, only three percent is repaid to the bank. The remaining one per cent is swallowed up in staff and general expenses.” said U Win Naing, bank manager of the aforementioned bank for Myanmar’s southern Region of Tanintharyi.
A total of K11, 744.9 million of credit was lent to farmers for monsoon paddy expenses within the Taninitharyi Region during the last fiscal year, and as of May 2, while K11, 270.95 million has been repaid, K473.95 million is still outstanding. Furthermore, K116.2 million of credit was lent to five township in the form of winter paddy loans, but as of May 2, a meager K1 million has been repaid, it is known.
“The last day for repayment of winter paddy loans is stipulated as June 30 so I don’t think we have any problems just yet. Farmers have still got time [to repay the credit lent to them]. The final date for monsoon paddy repayments was April 15 though, which we’ve now crossed over, so any outstanding repayments need to be made urgently. We’re currently planning the issuing of credit for the next season.” Added U Win Naing.
The primary reason behind the aforementioned losses is outstanding payments not being made within the stipulated repayment dates.
As such, loans of K100, 000 per acre issued during the previous fiscal year will be increased to K150, 000 this fiscal year. But, the increasing of credit limit comes with an increase of interest rates, rising to as much as eight percent this year from four percent the year previous. It is known that a farmer is eligible for a maximum credit loan for up to ten acres of land. In terms of those Tanintharyi Region townships with outstanding monsoon paddy credit repayments of the previous fiscal year, K2.1 million is owed by Kawthaung; K315.2 million by Myeik; K142.2 million by Kyunsu; K12.3 million by Tanintharyi; and K2.15 million by Palaw – totaling K473.95 million for the entire region, according to records. —Myitmakha News Agency
Source: Myitmakha News Agency
