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Myanmar's quake reconstruction loans: MMK 8.11 bn disbursed a year after applications opened

Published Data as of MyanmarCreditSME
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Key points

Implications for lenders

Lenders in Myanmar serving earthquake-hit areas may find borrowers waiting for concessional reconstruction loans, of which 1.2% of the initial fund had been disbursed by October. Banks that channel the scheme face committee scrutiny of each loan, so documented credit assessments are likely to matter. With inflation forecast at 24.0%, repayment capacity over terms of 3–5 years may need conservative cash-flow assumptions.

Implications

ExecutivesState-funded concessional credit for quake recovery has reached few borrowers so far; banks that channel it carry the assessment work under committee review.
InvestorsThe gap between the fund and disbursements points to slow take-up or slow approval; repayment data have not been published.
OperatorsQuake-hit households and MSMEs may wait for concessional loans before taking other credit, which can delay demand.

Facts

Disbursements: at a meeting of the Central Committee for Supervision of the Reconstruction Fund for Areas Affected by the Mandalay Earthquake on 2 October 2026, Central Bank of Myanmar (CBM) Governor Khin Naing Oo said MMK 8.11 bn 1 had been disbursed through 12 loans 2, in line with the scheme's standard operating procedures, according to the state-run Global New Light of Myanmar. The committee approved a further MMK 24.75 bn 3 across 10 loans 4 submitted by authorised banks, to one civil servant and nine businesses. The Governor said loans are scrutinised systematically in line with the fund management working group's recommendations.

Scheme: the CBM said on 2 September 2025 that an initial fund of MMK 700 bn 5, from the Natural Disaster Management Fund and the CBM, had been allocated for concessional loans to individuals and businesses hit by the Mandalay earthquake, with terms of 3–5 years 6. Eligible borrowers include civil servants, MSMEs, large factories, hotels and education businesses, for home, reconstruction, working-capital and fixed-capital loans through banks and non-bank financial institutions. In December 2025 the committee was preparing to disburse loans in January 2026, Eleven Media reported.

Analysis

Disbursements of MMK 8.11 bn equal 1.2% 7 of the initial fund; adding the loans approved on 2 October brings the total to 4.7% 8. For scale, the state-owned Myanma Agricultural Development Bank planned MMK 365.018 bn 9 of seasonal farm loans in a single region, Ayeyarwady, for the 2026–27 fiscal year.

The loans are reaching borrowers in a weak economy: ADB forecasts consumer price inflation of 24.0% 10 for the fiscal year to March 2027, and the manufacturing PMI was 49.1 11 in September, indicating contraction.

Counterpoints and uncertainties

The report gives no interest rates, repayment data, sector split or number of pending applications, and the disbursement dates are not disclosed. The share calculations use the initial fund only; any later top-ups would lower them, while loans approved earlier but not yet disbursed would raise the committed share. All figures come from state media; the CBM has not published a loan-level breakdown.

Key figures

  1. Earthquake reconstruction loans disbursed: MMK 8.11 bn
    Release dates of the disbursements are not disclosed.
    . Loans disbursed from the reconstruction fund for areas hit by the Mandalay earthquake, as reported by the Central Bank of Myanmar Governor. Reconstruction fund loans via authorised banks. Basis date: 2 Oct 2026. Source: Global New Light of Myanmar: K8.11B disbursed for MDY earthquake reconstruction loans (2026-10-04)
  2. Number of earthquake reconstruction loans disbursed: 12 loans. Number of loans disbursed from the Mandalay earthquake reconstruction fund. Reconstruction fund loans. Basis date: 2 Oct 2026. Source: Global New Light of Myanmar: K8.11B disbursed for MDY earthquake reconstruction loans (2026-10-04)
  3. Earthquake reconstruction loans newly approved: MMK 24.75 bn. Additional loans approved at the 2 October 2026 meeting of the committee supervising the reconstruction fund, submitted by authorised banks. Reconstruction fund loans. Basis date: 2 Oct 2026. Source: Global New Light of Myanmar: K8.11B disbursed for MDY earthquake reconstruction loans (2026-10-04)
  4. Number of earthquake reconstruction loans newly approved: 10 loans. Number of additional loans approved on 2 October 2026 (one civil servant, nine businesses). Reconstruction fund loans. Basis date: 2 Oct 2026. Source: Global New Light of Myanmar: K8.11B disbursed for MDY earthquake reconstruction loans (2026-10-04)
  5. Initial earthquake reconstruction loan fund: MMK 700 bn
    Made up of MMK 500 bn from the Natural Disaster Management Fund and MMK 200 bn from the Central Bank of Myanmar.
    . Initial fund allocated for concessional reconstruction loans (Natural Disaster Management Fund and Central Bank of Myanmar). Mandalay earthquake reconstruction loans. Basis date: 2 Sep 2025. Source: Global New Light of Myanmar: Quake-hit businesses eligible for K700B reconstruction loan (2025-09-04)
  6. Term of earthquake reconstruction loans: 3–5 years. Loan term set for the reconstruction loans when applications opened. Mandalay earthquake reconstruction loans. Basis date: 2 Sep 2025. Source: Global New Light of Myanmar: Quake-hit businesses eligible for K700B reconstruction loan (2025-09-04)
  7. Disbursed reconstruction loans as share of initial fund (T&S calculation): 1.2%
    Uses the initial fund only; any later top-ups to the fund would lower the share.
    . T&S calculation: MMK 8.11 bn disbursed (2 October 2026) divided by the MMK 700 bn initial fund (September 2025). Mandalay earthquake reconstruction fund. Basis date: 2 Oct 2026. Source: T&S calculation from Global New Light of Myanmar (2026-10-04, 2025-09-04)
  8. Disbursed plus newly approved reconstruction loans as share of initial fund (T&S calculation): 4.7%
    Uses the initial fund only; loans approved before 2 October but not yet disbursed are not reported and are not included.
    . T&S calculation: MMK 8.11 bn disbursed plus MMK 24.75 bn newly approved, divided by the MMK 700 bn initial fund. Mandalay earthquake reconstruction fund. Basis date: 2 Oct 2026. Source: T&S calculation from Global New Light of Myanmar (2026-10-04, 2025-09-04)
  9. Planned MADB crop loans, Ayeyarwady Region, FY2026–27: MMK 365.018 bn (vs more than MMK 150 bn in FY2025–26). Agricultural loans MADB planned to disburse in Ayeyarwady Region in fiscal year 2026–27. Ayeyarwady Region. Basis date: 12 May 2026. Source: One News: Agricultural loans to be doubled in Ayeyarwady Region (2026-05-14)
  10. ADB consumer inflation forecast, FY2026: 24.0% (unchanged from July 2026)
    Figure taken from JETRO, not extracted directly from the ADB PDF.
    . ADB ADO September 2026 forecast of CPI inflation, fiscal year April 2026–March 2027 (a forecast, not an outturn). Consumer prices. Basis date: 23 Sep 2026. Source: JETRO Biz News: ADB lowers Myanmar FY2026 growth forecast (2026-09-24)
  11. Manufacturing PMI (S&P Global): 49.1 (down from 50.3 in August). S&P Global manufacturing purchasing managers' index (above 50 = improvement on the prior month). Manufacturing sector. Basis date: 30 Sep 2026. Source: S&P Global Myanmar Manufacturing PMI, September 2026 (2026-10-01)

Sources

  1. Global New Light of Myanmar: K8.11B disbursed for MDY earthquake reconstruction loans (2026-10-04)
  2. Global New Light of Myanmar: Quake-hit businesses eligible for K700B reconstruction loan (2025-09-04)
  3. Eleven Media: Loans to be disbursed in January 2026 for reconstruction of earthquake-affected areas (2025-12-24)
  4. Myanmar Business Journal: Myanmar reports K8.11 billion in quake loans disbursed (2026-10-05)
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Reports are for information only and are not investment advice.

A Japanese version of this article is available: 日本語版

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