Pact Global Microfinance Fund
Since 1997, when Myanmar was a closed society under military dictatorship, Pact, with the support of UNDP, has been making small loans to the country’s rural poor to help them build their incomes and improve their lives.
Pact’s longstanding microfinance operations in Myanmar were turned over in 2012 to the new government-licensed entity Pact Global Microfinance Fund (PGMF) as a result of new national microfinance regulations that Pact played a leading role in developing. With the support of an international partner, PGMF began working in 2013 with nine Myanmar-based NGOs to develop their own microfinance operations in particularly remote areas of the country.
Today, Pact Global Microfinance Fund is by far the emerging democracy’s largest microfinance institution, currently serving more than 640,000 households – 99 percent of them women – in more than 9,000 villages.
In 2014 alone, PGMF disbursed more than 1 million loans worth $255 million, with an astounding repayment rate of 99.31 percent.
For most of those it serves, PGMF is the only access to affordable credit available. More than half of PGMF loans are for family farming, helping to increase yields and get products to market, resulting in higher household incomes.
PGMF was founded on the principle that credit alone is not enough for the poor to achieve income security. Each client attends business education classes where they learn how to save and use their loans to develop and grow their income-generating activities.
Demand for microloans in Myanmar is estimated at $1 billion per year. Only 28 percent of that demand is being met. In the next three years, PGMF plans to enroll nearly 175,000 new borrowers, offering unprecedented opportunity for the country’s rural poor to participate in Myanmar’s newfound economic progress.
In the future, PGMF also plans to expand to other countries, leveraging its deep experience in Myanmar.
To download the latest PGMF data from MIX, go here.