Paper

Myanmar Microfinance Money Management: Coping With the COVID Crisis

Advisory Note on the liquidity of microfinance institutions in the country

The lockdown in Myanmar ordered by the government of the country in response to the COVID-19 crisis has created challenges for the microfinance sector.  This Advisory Note estimates the magnitude of the liquidity shortfall for the largest 20 microfinance institutions (MFIs) resulting from the complete shutdown of operations for about six weeks in April-May 2020. 

This Note projects that even with a near complete bounce back of microloan recovery rates during June 2020 investors and lenders will need to provide funds of the order of $10-40 million per MFI (equivalent to 15-30 percent of overall funds for 15 of the largest 20 MFIs) for the microfinance sector not just to survive but also to revive its businesses and to sustain the enterprises of the  micro-borrowers by end of September 2020. 

About this Publication

By Sanjay Sinha & Tirupathaiah Namani
Published