Overall, remittances to the Asia-Pacific region will drop 12 percent in the second half of 2020 compared with the same period last year, Fitch Ratings says.
Government travel restrictions and orders to defer repayments and lower interest rates on loans due to COVID-19 have reduced the ability of Myanmar’s microfinance companies to help rural people who desperately need capital.
The Indonesian Fintech Lenders Association has offered to help accelerate the disbursement of national economic recovery program funds as the government struggles to amass the data needed to deliver the money to the right places.
Asia Pacific, which accounts for a third of the global migrant workforce, is likely to face remittance losses of $31.4-54.3 billion due to the coronavirus pandemic, the Asian Development Bank (ADB) said in a report.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed cash remittances coursed through banks declined by 6.4 percent to $11.55 billion from January to May compared to $12.35 billion in the same period last year.
IFC Loans to Vietnam Prosperity Bank and Oriental Bank to Boost Finance for Local Businesses Amid COVID-19, Support Economic Recovery
The aim of the additional financing is to help local businesses with disrupted cash flows sustain operations and maintain jobs.
Ministry of Economy and Finance undersecretary of state Ros Seilava told a news conference that the economic crisis instigated by COVID-19 had been the primary trigger for the emergency SME lending endeavours.