Burma’s lower house of parliament on Thursday agreed to borrow US$ 100 million dollar from the Export-Import Bank of China that will be used to fund cooperatives across Burma.
During Thursday’s lower house session, the cooperatives minister along with the minister of commerce presented the plan to MPs.
Speaking to DVB on Thursday, Lower House MP Phe Than said the house agreed to borrow the money and called on the Ministry of Cooperatives to present a detailed plan on how they will use the loans to the parliament.
According to Lower House MP Phyo Min Thein, the Ministry of Commerce will be tasked with borrowing the sum, while the Ministry of Cooperatives will then implement a plan that will distribute small grants.
“Nearly $700 million dollars will be borrowed from the bank. As a first step, $ 100 million will be borrowed. The interest rate is high at 4.5 percent and the service fee is one percent,” said Phyo Min Thein.
“We should take risks because of the high interest and service rate. It is good if it benefits the people. But, practically speaking, the benefits to people will be considerable,” he said.