Thursday, 03 June 2010 02:11 Kyaw Kha
Chiang Mai (Mizzima) – Burma’s ruling military junta has given the go-ahead for four of its cronies to open banks, amid fears among bankers that already existing competition will intensify and have a negative impact on them, a banker said.
The authority in Naypyidaw issued banking licences on May 29 to Tay Za, who will set up Asia Green Bank; Zaw Zaw for his Irrawaddy Bank, Nay Aung, who is opening Amaya Bank; and, Chit Khaing, who will roll out the Shay Saung Bank.
These junta cronies have greater starting capital than their competitors and the junta will place a higher priority on using their products and services, so they will have the upper hand, a veteran banker said.
“They own too many businesses all around the country. Moreover, the government has already been in the habit of giving priority to them”, he said. “When they run their new banks, we’re [Burmese banker] still unsure whether they will get favoured treatment from the junta. Fairness [in competition] is important to us”, he added.
IGE chief executive Nay Aung is a son of Aung Thaung, Minister of Industry No. 1.
Tay Za and Zaw Zaw have been awarded the title, “Thiri Pyanchi”, by the junta, to honour their business efforts. Tay Za chairs the Htoo Group and Zaw Zaw runs the Max Myanmar group and they were honoured for their “outstanding work” in helping Burma develop its economy and for contributions to the development of professional football. But close ties to the junta’s top generals have won them many lucrative business concessions in logging, gems, jewellery, tourism and transport.
Chan Tun said that in the past the title of Thiri Pyanchi was awarded to hardworking officials and businessmen whose efforts benefited the people. “Now it is for cronies who contribute to the businesses of the generals.”
Despite their dominance the business world, they are international pariahs. Both they and their companies are subject to international sanctions.
The US government has Tay Zaw and Zaw Zaw on its targeted sanction lists of junta business cronies because their dealings provide economic support to the junta. They are also banned from travelling to the US.
Tay Za, Zaw Zaw, Nay Aung and Chit Khaing are on one or both of the European Union’s and Australia’s economic sanctions blacklists.
Currently, there are 15 private banks in Burma.
Thursday, June 3, 2010
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