Microfinance Focus, August 26, 2011: Out of the total estimated demand of around $470 million for micro‐credit in the rural segment of the Myanmar economy, currently only 10 percent is being met, said UNDP Resident Representative Akbar Usmani at a workshop in Yangon recently.

Mr. Akbar Usmani was speaking at the best practice workshop organized by Microfinance Working Group in Myanmar. The Group was formed in 2004, by local and international NGOs, in collaboration with the United Nations Development Programme (UNDP).

During the workshop, participants noted that the microfinance system could be further expanded by strengthening the financial sector for more conducive growth and sustainability.

Microfinance practitioners in Myanmar including the former Deputy Governor of the Central Bank, U Than Lwin, PACT Myanmar, Groupe de Recherche et d'Echanges Technologiques (GRET), Save the Children, World Vision and UNDP shared their experiences on improving livelihoods through the creation of sustainable microfinance services for poor rural communities.

“UNDP Microfinance Project is presently providing about 80% of this micro-credit through PACT Myanmar, a non-profit organisation. Given the huge demand, the Microfinance Working Group is well placed to help further expand microfinance support services in Myanmar,” said Akbar Usmani.

From its infancy in July 1997, through the end of September 2010, the UNDP’s Microfinance Project has grown to become one of the 23 largest microfinance projects in the world with over 400,000 clients and with a loan portfolio of K 36 billion. Its loan repayment rate has constantly attained a percentage of 98% or higher. Women constitute 97% of its clientele.