Central Bank’s governor clarifies rumor of five bank accounts

Central Bank's governor clarifies rumor of five bank accounts

Published on Sunday, 06 October 2013 16:26

The Union Parliament seen in session on October 4 (Photo/EMG)

Central Bank of Myanmar has no knowledge about the US$11 billion in foreign banks in five different accounts, the Bank's governor Kyaw Kyaw Maung explained to Mps at the Union Parliament on October 4.
The governor was addressing the MPs who were examining media reports about the World Bank's refusal to cancel  outstanding debts "due to money sitting in private accounts abroad".

Myanmar has US$7.6 billion in foreign reserve money in foreign banks connected with the Central Bank, the state bank or private banks. Myanmar has used the foreign exchange reserves to pay daily business and trading transactions at overseas and business dealings. The total of cash balance left in foreign bank accounts and local bank accounts are about US$7.6 billion in cash until September 10, 2013, according to the governor.

"We don't know anything about the stash. The stash and the cash balance left in foreign bank accounts and local bank accounts are not connection," the governor said.

Moreover the Minister of Finance and Revenue Win Shein said the report stated in newspapers about the refusal from the World Bank to cancel the debts due to stash kept in five foreign accounts on September 10 is reportedly revealed from Mr. Jelson Garcia who is a manager of the Asia Program for the World Bank is not true. So the Ministry arranged a press conference to clarify the truth about it.

Myanmar has cleared the debts using the short term loan from an organization and a nation which is among the four ways propositions suggested by World Bank and Asia Development Bank, the Minister said.

The Minister continued that about World Bank's announcement of Mr. Jelson Garcia not representing or on behalf of World Bank, about the ways of using foreign exchange reserves for business and trading transactions at overseas and about Myanmar foreign exchange reserves in central bank, state bank and foreign banks.

MP Win Myint from Pathein constituency called for a clarification of the exact figure of amount the government has deposited in foreign banks and an explanation of why the government failed to notify the public about the foreign reserve in the past.

"We only learn about the existence of the US$11 billion deposited in five foreign bank accounts from the media. This is related to the welfare of the public and the dignity of the country so it is related to rule of law. Transparency and accountability is needed in order to have good governance and clean government. So, I want to know why there weren't any clarifications or announcements about such kind of issues in the past," said Win Myint.

"We saw many different versions in the news journals. For example, the Minister of Finance and Revenue said US$7.6 billion. A member of Myanmar Investment Commission said US$7 billion. The Central Bank's governor also said there were US$7.6 billion. Also, the Deputy Minister of Information said the government has not open accounts in foreign banks with state funds.

So, I want to know why there are many different versions. Who should the public and the MPs believe?" he continued.

Win Myint also raised a question regarding the remaining US$3.4 billion, which was not mentioned in the government's clarification.

"Only the foreign reserve and the US$7.6 billion has been clarified so who owns US$3.4 billion and from what kind of businesses did the money come from and what type of money is it? We also need to do this because the state fund is public money. The state fund is not owned by an individual. It's not an inheritance. It is owned by the public so a clear clarification needs to be given to the public. If the state can take action with transparency and righteously regarding this issue, the public's finance would not be lost and our country would have a good image among the world," said Win Myint.

The Central Bank's governor confirmed that US$7.6 billion is the correct figure but declined to answer the question on the remaining US$3.4 billion after insisting that there is no relation between US$7.6 billion and US$11 billion.

Source: http://www.news.myanmaronlinecentre.com/2013/10/07/central-banks-governor-clarifies-rumor-of-five-bank-accounts/