"On May 11, a storm swept through a village in Magway Region and battered the house of Ko Win Kyaw Soe. The need for repairs was urgent, he said, but without the money to cover costs or the time to jump through the hoops of a microfinance loan application, he reluctantly turned to an illegal moneylender. The decision has beckoned another storm ­– one of high interest rates and spiralling debt, and the possibility of threats and violence. But the economic turmoil brought by COVID-19 restrictions has left desperate borrowers like Win Kyaw Soe with little choice. For Win Kyaw Soe, the monthly interest of 20 percent on the K100,000 sum to fix his home in Tat Kone village in Magway Township would have been steep at the best of times. But measures to prevent the spread of the coronavirus had recently forced the temporary closure of the beer station where he was a waiter in Magway town, and for the time being he has no income. “I’m not sure I can pay back the capital, much less the interest,” Win Kyaw Oo told Frontier. “But I will do my best to pay the interest, at least.” Support independent journalism in Myanmar. Sign up to be a Frontier member. If he is unable to clear the loan within 30 days, he will have the choice of paying K20,000 to cover the interest or having it added to his loan. If he makes no repayments for 10 months, he will owe the principal plus K200,000 in interest. The moneylenders who provide quick cash to people like Win Kyaw Oo in desperate situations are often portrayed as predatory, seeking to trap their clients in an ever-spiralling burden of debt. But Win Kyaw Oo’s lender, who spoke to Frontier on the condition of anonymity, said this was exactly what she didn’t want. Yes, her interest rates are high, but this reflects the risk that she will not be paid back. And without such loans, people in need would have few other ways to access cash quickly, she added..."