WB PUTS BURMESE JUNTA ON INTERNATIO

[uneoo@xxxxxxxxxxxxxxxxxxxxxxx]

/* Written Tue 8 Sep 11:00am 1998 by drunoo@xxxxxxxxxxxx in
igc:reg.burma */
/* --------------" WB put Burmese junta on shame "--------------- */

WORLD BANK PUTS THE BURMESE JUNTA ON INTERNATIONAL SHAME
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>From the latest development regarding with Burma's repayment of debt
arrears to World Bank (see Reuters report), the amount of foreign
exchange reserve that Burmese junta currently having may have been
less than $20 million (or) close to complete collapse. In August 27
report by Far Eastern Economic Review, Burma foreign exchange reserves
was reported to be less than $60 million. Earlier our study showed
that, in recent years, Burmese junta choose to service the arrears
only to the multilateral donors, which include World Bank. The junta,
since it doesn't have the capacity to repay all its arreared-debts,
has been defaulting the payments to bilateral donors on regular basis.
Japan's annual debt relief grant to Burma was primarily to cancel
the interests and loan repayment arrears. Burmese junta defaulting
repayment to one of its multilateral donor, World Bank, is an
indication that SPDC/SLORC has certainly been in a severe financial
difficulty.

The remedial measures to this can be made by Burma's parliament
directly negotiating with these multilateral and bilateral donors.
To tackle this problem, the CEC of NLD and appropriate members
of SPDC/SLORC should form, as a practical first step, a
'Crisis Committee' to prepare a draft-plan to put forward before
Burma's parliament. To convene Burma's parliament, of course, the
lifting of restriction on members of parliament has yet to be
made by SPDC/SLORC.

SPDC/SLORC arresting NLD members/supporters in regional areas
yesterday is a wrong and dangerous move. Burmese people, now adays,
appears to be very conscious of what is happaning in their country;
even a slightest misconduct by SPDC/SLORC can cause a mass uprising.
No one will be able to help SPDC/SLORC achieving  reconciliation,
if public is mobilized along that direction.

With best regards, U Ne Oo.
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>From:<strider@xxxxxxxxxxx>

REUTERS: WORLD BANK CUTS OFF MYANMAR
4 September, 1998

WASHINGTON, Sept 4 (Reuters) - The World Bank on Friday cut financial
ties
to Myanmar, saying it would not consider giving the government any more
money because it had failed to make repayments on past loans.

In a rare and severe step, the Washington-based lending agency said it
placed loans and credits to the Myanmar government in ``nonaccrual''
status, meaning the country will not be able to borrow money from the
World
Bank until it clears its arrears, estimated at $14 million.

The decision will make it more difficult and expensive for Myanmar --
formerly known as Burma -- to borrow money from other lenders, because
it
sends a signal to private banks and financial markets that the
government
was in default to one of the world's lenders of last resort.

Myanmar is ruled by a military junta that has refused to let a
democratic
legislature elected in 1990 take power.

In May 1997 the United States imposed unilateral sanctions on Myanmar,
barring any new investment in the country but allowing existing projects
to
go ahead.

Myanmar has borrowed more than $700 million from the World Bank since
1956.
But no loans have been made since July 1987.

``The bank does not have an active lending programme and does not have
plans for one,'' a World Bank official said.

International pressure is growing against Myanmar's military government
over the issue of human rights, particularly its treatment of Aung San
Suu
Kyi, the daughter of Myanmar independence hero Aung San.

Other countries with protracted arrears to the World Bank include Iraq,
Liberia and Syria.

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XINHUA (CHINA): JAPAN PROVIDES MORE AID TO MYANMAR
4 September, 1998

YANGON (Sept. 4) XINHUA - Japan has extended to Myanmar a grant-in-aid
of 2
billion yen (15 million U.S. dollars) for debt relief, according to a
press
release of the Japanese Embassy here Friday.

Notes to this effect were exchanged on the same day here between the two

sides.

The grant-in-aid was extended to relieve the burden of debt the Myanmar
government owes to the Japanese government, the press release said.

Japan, one of the major donors of Myanmar, has extended 20 grants-in-aid

for debt relief to the country.

According to official statistics, Japan's investment in Myanmar reached
206
million dollars in 17 permitted projects at the end of April this year,
ranking ninth among 23 countries or regions which have a total of 7
billion
dollars of investment in the country.

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