Kaladan News

Dated: Tuesday August 19, 2003

Account Trade with Burma Hangs in the Balance

Chittagong, August 19:Account trade between Bangladesh

and Burma hangs in the balance as the US has imposed

economic restrictions on Yangon,according to Star

report.

Dollar crisis worsened in Yangon following the

economic restrictions. Due to restriction on opening

Lcs in Burma, Dhaka and Yangon had decided to

introduce account trade, which has now become

uncertain due to the US sanction, said a senior

official at the Ministry of Commerce.

According to a memorandum of understanding (MoU)

signed in March 2003, account trade will be settled in

every six months. But Burma may face a big problem for

settling the accounts due to dollar crisis, he added.

There was a proposal to open LCs in euro but there are

also apprehensions that adequate euro may not be

available with Burma, said the official.

According to the MoU, Bangladesh and Burma will have

to sign another agreement for banking arrangement and

send indicative list of products for account trade.

Sonali Bank has already been authorised for banking

arrangement and the draft was sent to Burma.

Yangon has approved the draft and authorised a bank

namely Burma Investment and Commercial Bank (BICB) for

settling the account.

The managing director of BICB was scheduled to visit

Bangladesh in May this year and all preparations were

made but Burma authorities had cancelled the visit at

the eleventh hour.

Bangladesh has sent an indicative list of 45 products

for export under account trade. But Burma is yet to

send its list to Bangladesh.

Account trade between Bangladesh and Rangon will begin

shortly," Commerce Minister told reporters after an

inter-ministerial meeting held at the Ministry of

Commerce conference room yesterday.##