UNDP moves out of microfinance

UNDP moves out of microfinance

By Aye Nyein Win and Pyae Thet Phyo   |   Friday, 06 June 2014

The United Nations Development Progrmme (UNDP) transferred its Myanmar microfinance assets to Pact Global Microfinance Fund at a Nay Pyi Taw ceremony on June 4.

The move will allow Pact NGO to independently run the microfinance operations after many years of being the lead agency in the UNDP's Myanmar microfinance programme, officials said.

UNDP began in 1997 as the pioneer microfinance project in Myanmar "at a time when such services were nonexistent", said UNDP country director Mr Toily Kurbanov.

"Now with the necessary legislative changes and local capacities developed through our project, other service providers can carry on with the work we started," he said.

The UNDP's Myanmar microfinance programme was the country's largest non-government small loan finance project, though the industry has seen increased international interest following the passing of the Microfinance Law.

"The enactment of the Microfinance Law in November 2011 established a regulatory framework for the microfinance sector, creating space for licensed microfinance service providers and allowing UNDP to exit retail microfinance operations and to leave behind a long lasting institutionalised legacy," the UNDP said in a statement.

Source: http://www.news.myanmaronlinecentre.com/2014/06/07/undp-moves-out-of-microfinance/