"...The development of microfinance in Myanmar requires a concerted effort between the government, donors and the other microfinance stakeholders. Throughout Asia microfinance has proved to be an indispensable tool in poverty alleviation strategies. Depending on each country, the dominant model varies from NGO-MFIs type (Bangladesh) to government sponsored programs (Sri Lanka, Indonesia), to a mix of both (India). A handful of microfinance actors already exist in Myanmar and could pave the way to a NGO-MFIs structured model benefiting from the support of donors and government. This report makes two sets of recommendations. >> The first is aimed at donor countries, which in the short- to medium-term will play a key role for the development of microfinance. Given the lack of other sources of financing, donors should increase their support towards Myanmar?s microfinance sector as part of their effort to alleviate poverty and promote growth by improving and expanding access to affordable rural finance. Donors should also be willing to support any initiative aimed at introducing a specific microfinance regulatory framework. >> The second recommendation is aimed at the Myanmar authorities and other microfinance stakeholders. It is recommended that a specific microfinance regulatory and legal framework is introduced, enabling the development of a sustainable and effective microfinance sector. However, such framework should be introduced gradually and in a phased manner, after a process of consultation with and capacity building of relevant stakeholders..."