Blended finance in Myanmar

The Currency Exchange (TCX)

In a fragile context, TCX blended donor funding with the financial inclusion mission of the development finance institutions operating in Myanmar. 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.

Website: https://www.tcxfund.com/blended-finance-in-myanmar/

    Date
    30 January, 2018
    Type
    Case Studies