MYANMAR – Pact Myanmar (also known as Pact Global Microfinance Fund) has reportedly ceased operations and cut over 4,000 jobs as it was forced to re-register as a subordinate of the junta.
It was officially announced that Pact Myanmar, which operates a microcredit business in Myanmar, will leave Myanmar at the end of June this year and loans, both principal and interest, will be forgiven. The group decided to exit as it cannot comply with the order to register as an economic organization under the control of the junta regime’s Small Industries Department by June 30, and its financial operations in Myanmar had to cease because Pact Global Microfinance Fund has no other choice.
The group explained that if PGMF is not able to register as a business organization by the end of June, it would be considered an illegal business and its employees could be put in great danger, and added that members’ loans will be deducted by saving balances. The members will be contacted to reissue the money if the savings amount is more than the loan balance and the loan balance will not be collected and written off if the savings balance is lower than the loan balance, so that there is no obligation to repay anyone else or Pact Myanmar.
In addition, it was officially announced that all loan balances received from PGMF will be completely eliminated as of June 26, so there is no need to pay the loan balance if someone asks for it, and that more than 4,000 employees will receive severance pay due to the departure of Pact Myanmar.