FOURTEEN private banks have agreed Participating Financial Institutions (PFIs) to operate the oil mills development loan programme, implemented under the State Economic Promotion Fund, in collaboration with the Myanmar Edible Oil Millers As­sociation.

Earlier, Myanma Economic Bank and Myanma Agricultural Development Bank only oper­ated the oil mills development loan programme. At present, 14 private banks have joined this programme as PFIs.

Involvement of private banks will help oil millers across the country get easy access to loans, upgrade oil mills, distrib­ute high-quality edible oil and reduce palm oil imports.

The domestic consumption of palm oil is estimated at one million tonnes per year, and palm oil worth about US$800 million is imported. There are over 4,250 oil mills running across the coun­try, with over 230 large mills, over 920 medium-scale mills and over 3,100 small-scale mills.

The State Economic Promo­tion Fund allocated K50 billion loans for oil mill businesses in order to reduce edible oil im­ports, buy raw materials, achieve self-sufficiency, expand, upgrade mills, and develop necessary equipment and new mills. The State Economic Promotion Fund allocated K50 billion loans for oil mill development, with five per cent interest per annum. — ASH/ MKKS