Statement on the Collapse of the Burma Banking Business

Federation of Trade Unions - Burma, 26 February 2003

On 14/ 02/ 03 the Central Bank of Myanmar issued a directive, restricting the private bank on the withdrawals of money. After that, the private banks were faced with the problem, of cash exhaustion. Therefore not only the private economic sector but also the general public and the people in government service all are facing difficulties in procuring money. As the entire banking system of Myanmar is on the verge of collapse, the hard-earned money and savings of the public, together with the private banking business of the military authority and its cronies shall vanish into thin air.

Economists observed that in the predicament of soaring costs and economic downturn, the private banks are now faced with a financial crisis that started with the failure of the (14) Financial Services established lay the junta and its followers. The main share holders of the Savings and Loan associations, Private Construction Industries and Banking Business are the SPDC general and their supporters, the drug lords.

Since the military seizure of power in 1988 and up to this day, it is the SLORC/SPDC military government that has planned, decided and implemented the financial and economic plans and projects to which the population has followed without any questions. Because of the junta's incompetence and mismanagement, inflation is spiraling out of control and the populace at large suffers in dire poverty and is miserably hard-pressed. The SPDC alone has the sole responsibility for the ill effects that shall ensue as a consequence of such failure in the banking business.

In 1999, the World Bank and the International Monetary Fund (IMF) had extended to help for the reform of the country's Economic and Financial system in accordance with the international procedures. Fearing their tight control of power might loosen and fearing the emergence of a true market economic system in the country, the junta declined the offer.

This nasty catastrophe is obvious evidence that without any political change and reform, the country's economic and social aspects shall remain in deplorable conditions. Therefore it is urged that international organizations and agencies to suspend aid and assistance until a political change towards genuine democracy in Burma is perceived.

The population of Burma is economically impoverished and socially disadvantaged because of serious errors committed by the SPDC military government in all avenues of social, political and economic sectors. It is exhorted that to be free from such ills, cooperation of the entire population plays a vital role in exerting for the democratic reformation.