Daily News- March 31 - 2003- Monday
  • Myanmar junta urges borrowers to repay banks quickly
  • Burma's political dialogue: stalled yet again
  • Chinese U-17 beats Myanmar youth team in soccer friendly


    • Myanmar junta urges borrowers to repay banks quickly

    Star, Malaysia

    YANGON, Myanmar (AP) - A senior leader of Myanmar's ruling military junta has urged those who have borrowed from crippled banks to repay their debts quickly to alleviate the plight of depositors and the country's economy, a newspaper reported Sunday.

    The New Light of Myanmar newspaper quoted Gen. Khin Nyunt, the No. 3 leader in the junta, as saying that the condition of crippled banks has improved in the last few weeks but much more needs to be done.

    "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 had deposited money in the banks and to ensure long term interests of the banks and to strengthen the national economy,'' he was quoted as saying.

    Khin Nyunt was speaking at the annual meeting of the Federation of Chamber of Commerce and Industry on Saturday, the newspaper said.

    Myanmar's financial crisis started in February with a panic withdrawal by depositors from the country's 20 private banks following the collapse of about a dozen private financial companies. The companies had illegally sold shares to the public, offering greater returns than the interest given by banks.

    Assurances given by the Central Bank governor on Feb. 10 exacerbated the run on the banks because many account holders believed the rare comment by a normally tightlipped government hid a big underlying problem.

    In a bailout package, the Central Bank is believed to have given a total credit of 25 billion kyat to the Asia Wealth Bank, the Kanbawza Bank and the Yoma Bank three of the biggest private banks in the country. The amount is worth about US$4 billion at the official exchange rate or US$25 million at the widely used black market rate.

    Still, the rush for withdrawals led the three banks to suspend credit card services, and the Central Bank imposed a limit on withdrawals.

    Depositors were allowed to withdraw 500,000 kyat a week on Feb. 18 and the amount was later reduced to 100,000 kyat a week. Lately, some major banks have further reduced the withdrawal limit to 50,000 kyat a week.

    Many people have been forced by banks to repay their loans, often selling their assets, mostly cars, at a loss, said one businessman forced to repay his loan who spoke on condition of anonymity.

    A second-hand car dealer said one of his customers sold his vehicle in desperation for about half the market price because of pressure to pay back his loan.

    Ordinary people who took out loans to buy consumer goods or property have also been hard hit by the new bank regulations.

    "This is a breach of contract by the bank. I have been paying the interest regularly and I have the right to get an extension for the loan as I have given collateral for the loan,'' said Khin Khin San, who said she had bought a plot of land with the money.

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    Burma's political dialogue: stalled yet again

    KAVI CHONGKITTAVORN
    The Nation

    The war in Iraq has had a great dampening effect on the future prospects of the reconciliation process in Burma. The Burmese junta leaders know full well that world attention is no longer focused on their ongoing suppression of the Burmese people.

    The much-heralded release of opposition party leader Aung San Suu Kyi last May has remained only a gesture. The regime is still reluctant to genuinely start the much-awaited political dialogue to proceed towards power-sharing and building democratic institutions.

    Burma is also facing an economic malaise of its own making. The fallout of its banking crisis in recent weeks will have far-reaching ramifications on its poorly managed financial markets and the economy in general.

    In such a dire situation, the dialogue process has now become the regime's most efficient diplomatic instrument to increase international support and recognition. Apart from delaying further sanctions and weakening support of the opposition, the junta aims to sideline democracy and strengthen its grip on the lives of the Burmese people.

    The latest incident encountered by the UN Special Rapporteur for Human Rights Paulo Sergio Pinheiro pointed to Burma's ulterior motives in international engagement. Pinheiro cut short his visit to Rangoon last week after finding a hidden microphone inside the room he used to interview political prisoners. Later he told reporters in Bangkok he was frustrated by the slow progress of both the reconciliation dialogue and the release of political prisoners.

    The UN has been pressuring the Burmese regime to set free more prisoners to show its seriousness in the dialogue process. So far, the regime has released around 600 political prisoners. Nobody knows the exact numbers, but Bangkok- based diplomats said that at least 500-600 were still in prison. Given the circumstances now, the reconciliation process will run according to the regime's timetable and at its own choosing.

    This tactic has served the junta leaders well in engaging the world over the past three years. On the surface, they have displayed a willingness to talk with the opposition in order to confuse international opinion about their goodwill and to soften demands for tough measures against the Burmese regime. That explains why the international community cannot agree on measures to isolate and punish the regime.

    Within Burma, the junta leaders have choreographed their moves so precisely that the reconciliation process has been used as an alibi to weaken the opposition party. While Suu Kyi is free to travel, the junta has instigated incidents to mar her visits.

    Now, returning diplomats - who have access to both regime and opposition leaders - talk more about the regime's need for more humanitarian assistance to alleviate the HIV/Aids epidemic, ignoring the opposition's eagerness to begin dialogue. Suu Kyi has clearly stated she is ready to enter the dialogue without any conditions. But the junta leaders continue to dodge the talks and ignore her appeals. Indeed, the regime has continued to enjoy this win-win situation. As long the status quo persists, nobody will pay much attention anyway.

    Prime Minister Thaksin Shinawatra said last week that he wished he could seize Muang Yuon, the town inside Burma across the Thai border controlled by the Wa army. Muang Yuon has been used as a base for manufacturing and transporting amphetamine pills, or ya ba.Obviously, like Pinheiro, Thaksin has been hamstrung by slow progress on the anti- drug effort pledged by the Burmese leaders.

    Despite much hullabaloo over the past two years, Thaksin has not succeeded in his Burmese policy. His willingness to comply with the regime's requests has become routine, while issues affecting Thai-Burmese security have remained unchanged, not to mention unresolved. The removal of Thai generals responsible for firm and tough Burmese policies and the amputation of Task Force 399 have weakened the Thai defence capacity along the border as never before.

    One disturbing trend, according to a Thai military intelligence source, is the dramatic improvement of Burmese military capability over the past two years. Despite financial woes, money from the cross-border trade and the Yadana gas pipeline has increased the Burmese regime's purchasing power for new weapons and new technology. Security concerns remain as always at the top of Burma's list of priorities, while the Thaksin government naively believes the economic incentives it offers will subsequently alter the regime's perceptions.

    As long as Thailand continues its current Burmese policy, the reconciliation process in Burma will suffer. The Thaksin government has single-handedly transformed this endeavour, once fully backed by the international community, into a bilateral burden. No wonder the junta leaders keep demanding that Thaksin do more, especially security measures at the Thai-Burmese border through the removal of ethnic groups. Recently Thaksin has even made an overture to be a mediator between the regime and the ethnic groups.

    Burma's increased intransigence is the result of the junta leaders' illusion that they can get away scot-free with thwarting the free will of the Burmese people. As a willing accomplice, the Thaksin government is being used to bear the responsibility for the lack of progress in the dialogue process. A case in point is that the regime repeatedly uses border insecurity and ethnic problems as a pretext to delay political dialogue with the opposition.

    Unless Thailand changes its present course, the country will be further sucked into the regime's sleight-of-hand games.

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    Chinese U-17 beats Myanmar youth team in soccer friendly

    YANGON, March 31 (Xinhuanet) -- Visiting Chinese U-17 football team defeated a Myanmar selection team 2-1 in the first match of Myanmar-China soccer friendly series held at the Youth Training Center in Thuwunna here Sunday evening.

    Jiang Chen of the Chinese team opened the scoring at the 41st minute and two minutes later, Jiang Ning made it 2-0. The Myanmar team scored a consolation goal by Mar La 9 minutes into the second half.

    At the invitation of the Myanmar Ministry of Sports, a 26-member Chinese U-17 National team, comprising 21 players, arrived here on last Friday to play three friendly matches in Yangon and Bago.

    The Chinese team will play against the Myanmar Olympic Youth team on Wednesday and the third match will be held in Bago on Saturday.

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