Pact Global Microfinance Fund (PGMF), an international nongovernmental organization (INGO) has failed to transform into a company in time and so their microfinance business activities will be suspended and the liquidation processes will be proceeded, according to the statement released by Microfinance Business Super­visory Committee of the Min­istry of Planning and Finance on Thursday.

The proposal to do such action was submitted to the committee on 11-7-2023 and the committee will carry out that case as per the provisions of Microfinance Business Law.

The committee granted mi­crofinance business licences to the local and foreign compa­nies, partnership firms, INGOs and NGOs that register under the Myanmar Companies Law, Registration of Associations Law under Section 13 of 2011 Microfinance Business Law (Pyidaungsu Hluttaw Law No 13/2011) by reviewing them.

The US Delaware-based INGO called Pact Global Mi­crofinance Fund (PGMF) made registration as an INGO at the Ministry of Home Affairs in 2012 and applied for a work licence to provide microfinance services at Microfinance Business Su­pervisory Committee. The com­mittee granted a permit with business licence No 0022/2012 on 22-6-2012.

Under Registration of As­sociations Law 2014 and 2022, the organizations that regis­ter as INGOs and NGOs and seek business licences are not allowed to operate financial businesses. Therefore, the com­mittee instructed the INGOs and NGOs to transform into cooperating entities in 2018, the statement said.

A total of 180 microfinance organizations provide microfi­nance services to over 4.496 mil­lion members in 267 townships, 2,308 wards and 27,773 villages of 15 regions/states with mi­crofinance business licences in Myanmar until May 2023.

Currently, 179 microfi­nance organizations that re­ceive licences from the com­mittee offer microfinance services across the nation. — Htun Htun/KTZH