Myanmar Tourism Bank will open within six months: official

Myanmar Tourism Bank will begin operating within six months in Yangon, Mandalay and Nay Pyi Taw after a long delay to obtain approval from the government, said an official.

'We intend to give low interest, long-term loans for small and medium ethnic entrepreneurs, especially in the tourism industry. This is our main aim because we don't have that kind of service from banks in the country at present,' U Yan Win, a shareholder of the bank, told The Myanmar Times last Wednesday.

In early December, the President's Office directed the Central Bank of Myanmar to approve the opening of Myanmar Tourism Bank, Mineral Development Bank, Glory Farmer Development Bank, Mandalay Farmer Development Bank and Shwe Nann Saw Bank.

At the initial stage, Myanmar Tourism Bank consists of 26 shareholders - hoteliers, travel and tour company owners. Other shareholders from the public will be invited to join once its license is approved by the Central Bank of Myanmar, said U Yan Win.

Initiated during U Thein Sein's government, K2 billion was raised to finance the Myanmar Tourism Bank to help promote the tourism sector, but it failed to get the necessary approvals from relevant authorities.

Currently, there are five similar banks in operation, including the Myanmar Micro Finance Bank, Naypyitaw Sibin Bank and Construction and Housing Development Bank, which were granted permission to operate in July 2013.

The other two sector-specific banks are Shwe Rural and Urban Development Bank that was approved in July 2014 and the Ayeyarwaddy Farmers Development Bank, which received approval in November 2015.

In the tourism industry, there are a few hoteliers and travel and tour company owners who are able to invest large amounts to finance their businesses but others are mostly small and medium entrepreneurs (SMEs) who face financing difficulties. Therefore, the aim of the bank is to offer low interest loans to assist them, said U Yan Win, who is also chair of the Myanmar Tourism Federation.

'If affordable loans are available, we can cooperate with international companies and that is why we are preparing to open such banks not later than six months,' he added.

According to the Ministry of Hotel and Tourism's statistic, there were 2508 travel and tour companies as of the end of November, but the majority are SMEs.

Read full article at MyanmarTimes: https://www.mmtimes.com/news/myanmar-tourism-bank-will-open-within-six-months-official.html