soc.culture.burma -Two Thai Banks R

[tinkyi@xxxxxxx]

Subject:      Two Thai Banks Rule out Joint Ventures  with Burma
Date:         1998/10/20
Message-ID:   <362B64EF.B5B71352@xxxxxxxxxxx>
Newsgroups:   soc.culture.burma
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Two Thai Banks Rule out Joint Ventures  with Myanmar

BANGKOK (Oct. 19) XINHUA - The Thai Farmers Bank and Siam City Bank have
ruled out a plan to form a joint venture respectively with Myanmar, citing
lack of transparency in the country's foreign exchange system.

Thai Farmers Bank's first executive vice-president Siripongs Kalayanarooj
said Monday that the bank has  canceled a memorandum of understanding to set
up a bank in Myanmar, as there is so far no transparency in exchange rate of
Myanmar's local currency.

He told reporters that currently the Myanmar currency is traded at four
Myanmar kyat against one Thai baht on the black market, while the official
rate is at one kyat against four baht. This attracts growing black  markets
resulting in uncertainty in investment.

Siripongs said another major reason was that the bank has no plan for any
new investment abroad for the time being.

Since the beginning of this year, the Thai Farmers Bank had closed down many
branches with poor  performance abroad to reduce costs.

Meanwhile, a Siam City Bank executive said the bank has also canceled a
memorandum of understanding to form a joint venture with May Flower Bank of
Burma, citing the same reason as the Thai Farmers Bank.