Myanmar

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Government of the Union of Myanmar Ministry of Finance and Revenue Myanma Small Loans Enterprise

Content of the operations and achievements of the Myanma Small Loans Enterprise.

Organizational Set-up and staff Strength. Operations Financial Position Achievements and Progress Plans for Further Action Participation in Special Project

Organizational Set-up and staff Strength

1.The Myanma Small Loans Enterprise was first established in 1952 under the name of the State Pawnshops Management Board. In October 1961 it became a subsidiary company of the Burma Economic Development Corporation under the name of the People’s Loans Company. When the BEDC was nationalized in 1963, the People’s Loans Company was incorporated first into the People’s Bank of the Union of Burma and then into the newly formed Myanma Economic Bank as a small loans department of that Bank. When the Financial Institutions of Myanmar Law of 1990 was promulgated, the small loans department seceded from the Myanma Economic Bank and became a separate financial institution with effect from the 14 August 1992 under the name of the Myanma Small Loans Enterprise. The Enterprise under the guidance of the Managing Director is composed of a Head Office, the (9) State and Divisional Managers’ Offices and 184 Small Loans Branches under the supervision of respective state and divisional managers with a force of officers and staff amounting to 1828 personnel.

Operations

2In accordance with its motto of “Correct and prompt service” the Myanma Small Loans Enterprise is issuing loans to the public at areasonably low rate of interest, accepting gold jewellery as pledges. In order to ensure the successful performance of the loans issuing business with unabated momentum, these operations are being carried out by 184 Small Loans Branches all over the country under the management and control of the 5 sections of the Head Office and under the supervision and inspection of Kachin State and Sagaing Division Manager’s Office, Bago Division Manger’s Office,Magwe Division Manager’s Office, Mandalay Division Manager’s Office, Mon and Kayin States and Tanintharyi Division Manager’s Office, Rakhine State Manager’s Office, Yangon Division Manager’s Office. Shan and Kaya States Manager’s Office and Ayeyarwaddy Division Manager’s Office.

Financial Position

3.When the Myanma Small Loans Enterprise was first established the State allowed it an authorized capital of Kyats 200 million. The Enterprise started its business with an initial capital of Kyats 10 Million and, as of 31st March 2007, the paid-up capital stood at Kyats 1000 million and the reserve fund stood at Kyats 930 million. With the progress achieved in its business, the Enterprise is now carrying out its operations by acquiring for its necessary running capital a loan limit of Kyats 5000 million from the Myanma Economic Bank. Since the Enterprise has, as its assets, a loan balance on 20-12-2007 of Kyats 8729 million issued on the pledge of jewellery and, as liability, a loan of Kyats 3668 million taken from the Myanma Economic Bank, the Enterprise stands in a good financial position.

Achievenents and progress

4.Due to its ability to manage the business in accordance with the market-oriented economic policy, the Myanma Small Loans Enterprise is standing as a successful state economic organization which is annually making increasing financial contributions to the State as well as helping the Myanma Economic Bank to increase a part of its annual income.

5.The Enterprise had made financial contributions to the State amounting to Kyats 314 million in the fiscal year 2002-2003, Kyats 768 million in the fiscal year 2003-2004, Kyats 1065 million in the fiscal year 2004-2005 Kyats 1116 million in the fiscal year 2006-2007, Kyats 1252 million in the fiscal year 2006-2007. Moreover, income tax was imposed on the Enterprise with effect from the fiscal year 2002-2003. For 2002-2003 Kyats 213 million, for 2003-2004 Kyats 472 million, for 2004-2005 Kyats 620 million, for 2005-2006 Kyats 641 million, for 2006-2007 Kyats 716 million were paid as income tax. The Enterprise also paid the Myanma Economic Banks as interest for 2002-2003 Kyats 310 million, for 2003-2004 Kyats 326 million, for 2004-2005 Kyats 222 million, for 2005-2006 Kyats 304 million and for 2006-2007 Kyats 434 million.