January 10, 2018
A bank focused on developing the tourism sector in Myanmar is expected to start operations within the next six months.
The main function of the new lender will be to provide low interest, long-term loans to entrepreneurs operating in the tourism industry, U Yan Win, a shareholder of the bank, was quoted as saying by a local source.
The new bank is part of a range of new sector-specific banks given approval by the President’s Office, to be directed by the Central Bank of Myanmar, which will also include the Mineral Development Bank, Glory Farmer Development Bank, Mandalay Farmer Development Bank and Shwe Nann Saw Bank, said the report.
Plans for a tourism bank were discussed during the government of U Thein Sein, with MMK2 billion raised to fund it, but the plans never materialised. The move appeared to be welcomed by figures in the tourism industry.
“We hope to get low -interest loans without any collateral in the bank,” said U Kyaw Min Hlaing, managing director of Shwe Myintmo domestic tours.
“If Myanmar Tourism Bank can give K40 million or K50 million to each SME, that will be very useful for our business.”
According to the Ministry of Hotel and Tourism’s, there were total 2508 travel and tour companies by the end of November last year and majority of them are SMEs.