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Microfinance and Insurance Laws Expected Next Year

canlender17/09/2019

Author: Zin Thu Tun : The Ministry of Planning and Finance is in the process of revising the Microfinance Business Law and Insurance Business Law, and expects to finalize the regulations in 2020, according to U Thant Zin Soe, Director General of Financial Regulatory Department.

“The Microfinance Business Law is being revised and is in its final draft, and has been sent to the Union Cabinet for review. The Insurance Business Law, however, is still in a zero draft state,” he said.

The existing Microfinance Business Law was enacted in 2011, and the 1996 Insurance Business Law is far outdated and in need of revision. This is why the department is trying to update the laws. The insurance law is in a zero draft state, which means one of two things; work hasn’t started on it yet, or the framework on the law is in a very rough and unstructured state.

The drafts will provide space for small businesses that will cover both micro-finance businesses and insurance businesses and the department will publish drafts for the general public.

“Our aim is trying to establish a legal framework by bridging the two laws. We will also organize a consultation workshop in Naypyidaw, and invite insurance companies and microfinance companies to provide insight,” U Thant Zin Soe said.

The World Bank, JICA, USAID, UKaid and DaNa Facility are providing technical assistance for drafting the laws.