Yangon, 28 June

 The Pact Global Microfinance Fund (PGMF) announced its closure of business without extending licence in Myanmar, and it will forgive outstanding debts to he tomorrowers.

The PGMF provided loans to 2.3 million rural people in 15,000 villages for 25 years.

The microfinance organization which is known as the Pact Myanmar decided to close its operations  after it denied for re-registration under the Small Scale Industries Department by 30 June, according to an official of PGMF.

“It is with great sadness that I am announcing the closure of PGMF in Myanmar. The organization’s leadership has tried ceaselessly over the last two years to secure the necessary approvals to keep it operating. By denying us the ability to register, the government has forced us either to leave Myanmar or to operate illegally, said Ellen Varney, PGMF Board Chair, adding that PGMF has unavoidably decided to stop operation in Myanmar.

After the coup, the banned PGMF from providing new loans to clients and denied visas for the organization’s senior leadership.

Strict foreign exchange controls further limit PGMF’s operations.

The PGMF has forgiven more than $156 million in outstanding debts held by our 890,000 borrowers, ensuring that PGMF assets go to the people of Myanmar. 

The management has pre-paid salary and benefits, as well as a bonus, to all the PGMF family across Myanmar.  It has also honored its obligation to pay for any accrued leave not taken and for any benefits owed. 

The PGMF has provided services to 2.3 million customers in nearly 15,000 villages for 25 years, and 99 percent of its financial assistance went to women.

It also said that PGMF stand ready to re-enter microfinance  sector of Myanmar when conditions permit.

 News—Than Lwin Times

Photo—Pact Myanmar

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