|MYANMA AGRICULTURAL DEVELOPMENT BANK|
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The MADB is state owned and the successor to the State Agricultural Bank (SAB) established in 1953, which latterly became the Myanma Agricultural Bank (MADB) in 1976. It has a countrywide network of 14 regional offices, 169 branches and 44 agency offices with 3357 staff providing short term and long term credit to over 2 million farmers.
The MADB Law enacted in July 1990 grants the Bank a broad mandate to effectively support the development of agricultural, livestock and rural socio-economic enterprises in the country by providing banking services. The Law also raised the authourizes capoital of the Bank from K 40 million to K 1000 million.
The MADB is authorized to make loans to state owned agricultural organizations, livestock organizations, cooperations, private entrepreneurs, village banks, farmers and farm labourers.
Loans are classified as : -
(1) annual loans (up to 12 months) which are mainly for crop cultivation;
(2)short term loans (2 to 4 years) ; and
(3)long term loans (5 years and above) which are mainly for purchase of farm implements, draft cattle, bullock carts, pump sets, power tillers, etc., as well as for integrated farming projects.
Annual loans are disbursed for 28 varieties of crops. Total disbursement for crops in 1995-96 was K 9014 million, covering 1.7 million farmers. The current rate of interest, effective 1989-90, is 13 percent.
Over the last 15 years, term loans amounting to K 3098 million have been disbursed to farmers for purchase of cattle, carts, pump sets, farm implements, etc.
Under the programme for the development of border areas and national races and eradication of narcotic drugs, the Bank issued loans with special funds allotted by the Government at concessional interest rate (1%) for orchards in Chin State, for rubber and sugarcane plantations in Shan State for opium substitution, for draft cattle, carts and for farm machinery in the Kabaw valley.
Starting from 1991-92 more medium and long term loans were issued for the development of agriculture, the type of loans being-loans to livestock breeders for 15kunds of livestock, loans for integrated paddy and fish farming, loans for solar salt production, and loans for cultivation of mulberry to support sericulture, etc.
The Bank launched a rural savings programme on the 1st October 1993 under which 2 million farmers and the rural population are being encouraged to deposit their surplus income at the Bank in 10% interest earning savings accounts. The interest on saving was raised to 12% effective from 1996-97. The rural savers are being allowed to borrow farm development loans up to 4-5 times their deposits at 15% interest.
In order to facilitate the rural population to deposit their savings in the Band, MADB staff render mobile service by which 6.69 million farmers have been given access to the Bank facilities, right to their doorstep. As of end Sept: - 1996, over 1.5 million farmers and rural people had opened savings bank accounts with the Band and deposited K 933 million.