Myanmar Tourism Bank starts operating first branch

Myanmar Tourism Bank starts operating its first branch on Pyay Road, Kamayut Township, Yangon in 6th May. MTB holds the full commercial license in 2018 and MTB was opened with an investment of 22 billion Kyats with the permission of the Central Myanmar Bank of Myanmar. It is founded by a public tourism company and 26 shareholders from tourism industry invested in it as an initial stage. The bank aims to offer low interest and long-term loans to assist the tourism sector. Loan rates for those without collateral is 16 percent rate and for those who are able to provide collateral, 13 percent. In addition to giving out loans to tourism companies, personal loan will also be provided for those who want to travel, as a way to support the development of the tourism sector. MTB will support the 5% of the annual profit to the ministry and for the tourism industry development, said U Yan Win, Chairman of MTB. “Our bank will offer services including international standard payment solution, fix deposit, loan service, special saving interest rate and Cool Banking system (Corporate online banking). All with be done in cooperation with foreign banks. If we get approval to use foreign currency, we will run also with an investment of 5 million USD” added U Yan Win. MTB will start operating other branches in Nay Pyi Taw, Mandalay and other places in next month.
“As a tourism-related bank, we will focus on lending to this sector. But we also plan to offer financial support to other related sectors and businesses. We will support the inbound and outbound tour businesses,” said U Saw Bo Bo, managing director of Myanmar Tourism Bank. MTB will decide to extend loans base on the nature of the business of the borrowers added U Saw Bo Bo. According to Ministry of Hotel and Tourism, there are more than 2500 travel and tour companies by the end of November, but the majorities are small and medium-sized enterprises (SMEs). In the tourism industry, there are a few companies which can invest their businesses with large amount of money but most are SMEs which face financing difficulties.

Reference- myanmartimes, mitv