Mahar Bawga entered Semi Collateralized Funding Agreement with Yoma Bank

Yoma Bank, one of Myanmar’s largest private banks and Mahar Bawga Finance (MBF) signed a semi collateralized funding agreement on 1^st February. Yoma Bank offered K2.2 billion (US$1.46 million) to MBF as a loan support to enable the firm meeting an additional 5,000 customers’ demand. Yoma Bank CEO Hal Bosher was quoted as saying by 1st February, “This partnership highlights our ongoing commitment as Myanmar’s largest provider of liquidity to MFIs and NBFIs.” It is the first time for Yoma Bank to sign such agreement and it believes the partnership will help improve the level of borrowing behavior and financial literacy of the consumers. To this day, Yoma Bank has provided financing K75.7 billion (approximately US$50.2 million) to 10 microfinance institutions such as BRAC Myanmar Microfinance, VisionFund Myanmar, Easy Microfinance and Pact Global. MBF is planning to offer financial solutions with an aggregate loan book of K4.59 billion (approximately US$3.04 million) to over 14,000 clients in Yangon. As a move to support the non-banking sector, IFC indirectly funded MBF before through Yoma Bank.