Blended finance in Myanmar

31 January, 2018

In a fragile context, TCX has blended donor funding with the financial inclusion mission of the development finance institutions operating in Myanmar, resulting in over USD 80 million in local currency investments.

As Myanmar’s economy opened up in 2011, microfinance providers were looking for significantly more funds to expand and satisfy the microfinance needs of the population. However, the volatility of the Myanmar kyat, combined with the regulatory interest rate ceiling (13% p.a.), made lending in local currency unattractive to investors.

A USD 10 million subsidy provided by a consortium of donors to the Livelihoods and Food Security Trust Fund (LIFT) allowed TCX to hedge 11 microfinance institutions (MFIs) in Myanmar.

In total, TCX converted USD 80 million of microfinance debt financing sourced from abroad into Myanmar kyat.

Read more in this new publication or visit TCX page on impact in Myanmar for more information.

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