Burma’s Private Banking Crisis - a Chronology
(Page 2 of 3)
E-MAIL
PRINT
Feb 22—The Singapore-based Business Times reports that Singaporean companies are watching the crisis with concern and that one trading firm has already closed down operations in Rangoon.
Feb 23—Sr-Gen Than Shwe ostensibly cancels a trip to Kuala Lumpur for health reasons, where he was to attend the Non-Aligned Summit. Analysts, however, feel the cancellation is in response to the ongoing banking crisis at home. Foreign Minister Win Aung represents Burma at the summit.
Feb 24—The Myanmar Times carries a story quoting Gen Khin Nyunt’s address to the Ministry of Commerce. The weekly journal also quotes Brig-Gen David Abel, minister for the Office of the Chairman of the State Peace and Development Council, saying some banks had not operated within the boundaries of Burma’s finance laws and had loaned more money than was allowed. In the article, Zaw Win Naing, managing director of Kanbawza Bank, says: "The problem we face can be worked out soon, and it is a temporary problem."
Feb 25—A five-day fishery and livestock fair scheduled to start today is cancelled due to the banking crisis. Banks again call on customers with outstanding loans to repay their debt, and revise earlier demands for a 25 percent repayment to 50 percent.
Feb 26—The SPDC officially orders banks to cease account transfers.
Feb 28—After the government bailout, some business account holders are permitted to make larger withdrawals to pay salary to staff, but most small accounts and personal investments are still restricted. Some traders also say that they have been unable to repay debts to other merchants, as their money remains tied up in the banks.
March 01—Traders along the Thai-Burma border in Thailand’s Tak Province are not affected by the ongoing crisis, the Bangkok Post reports. The Tak Chamber of Commerce says impacts would be minimal as importers and exporters on the border did not rely on Burmese banks.
March 02—The New Delhi-based Mizzima News Service reports that last week’s closure of the Burma Economic Bank in Tamu, Sagaing Division, close to the India-Burma border, has resulted in large losses for both Indian and Burmese traders. Indian exporters complain of pending dues from Burmese buyers. "The Burmese traders are also worried over the developments but they are prevented from protesting," the vice-president of the Indo-Myanmar Traders Union said.
March 04—Burma’s former Finance and Revenue Minister, Khin Maung Thein, whose retirement immediately preceded the run on banks, is reportedly being investigated by military intelligence for his connection to the crisis.
March 13—A group of border traders from both India and Burma plan a meeting to discuss possible solutions to ongoing financial problems in the town of Tamu.
March 14—People in Rangoon begin selling luxury items, including automobiles, as investors are forced to repay loans. But with fewer people in a position to buy such items, the price of used cars, for example, drops by as much as 50 percent. Financial problems are also linked to an increase in the number of robberies.
March 18—The scarcity of currency continues to strengthen the kyat. Moneychangers in Rangoon say the greenback is trading for as little as 850 kyat.
March 29—A day before the first deadline for loan repayments, Gen Khin Nyunt holds a meeting in Rangoon. He says that condition for banks were improving, but customers still needed to repay outstanding loans. "I would like to urge those who have taken loans from the banks to strive to repay their debts speedily in consideration of those who have deposited money in the banks, and to ensure the long-term interest of the banks and to strengthen the national economy," Khin Nyunt said.
March 30—Time is up for the first lot of repayments on bank loans. An official from the Asia Wealth Bank said that at least 50 percent of loan debts were due today and warned that there would be reprisals, to be detailed on the weekend, for those who did not. Kanbawza Bank, meanwhile, called for 30 percent of debts to be repaid by today. All the banks have their own duties to report to the Finance and Revenue Ministry on the progress of the loan recall.
Nov 19, 2003—The US Treasury Department names two Burmese commercial banks, Myanmar Mayflower Bank and Asia Wealth Bank, to be of "primary money laundering concern" under Section 311 of the USA Patriot Act, enacted to fight terrorism. The Treasury’s report reads that the two banks have been linked to narcotics trafficking organizations in Southeast Asia and the military government failed to remedy serious deficiencies in its anti-money laundering system. It also announced plans to impose a ban on US financial institutions having correspondent accounts with Burmese banks, allowing exemptions in certain cases.
« previous 1 | 2 | 3 next page »
COMMENTS (0)