Myanmar to transform public bank into export-import bank

Myanmar is seeking to transform a public bank into an export-import bank to facilitate exporters and importers in the country in carrying out their international trading activities, a local weekly Voice reported Monday.

The public bank, which is being sought for such transformation, is the Myanmar Citizen Bank, in which the Ministry of Commerce holds a stake of 55 percent, said the Voice, quoting a recent disclosure of the bank meeting at the ministry in the new capital of Nay Pyi Taw.

The Myanmar Citizen Bank stands one of the 15 private banks in the country at present.

The ministry is also encouraging the exporters and importers in the country to join shares of the Myanmar Citizen Bank which is being strived to become an export financing institution for them, the report said.

There has been Myanmar Livestock Breeding and Fishery Development Bank, Myanmar Agricultural Development Bank and Myanmar Industrial Development Bank for respective entrepreneurs, but there are no exporters and importers bank yet for traders engaged in international trading business, according to traders.

At present, the state-owned Myanmar Foreign Trade Bank is generally and mainly handling foreign currency transactions along with some private banks authorized for such transactions, while the Myanmar Investment and Commercial Bank deals with foreign investment in the country.

Meanwhile, the Myanmar commerce authorities has urged over 10, 000 registered private trading companies in the country to function fully to boost foreign trade.

According to official statistics, Myanmar's foreign trade hit 5.5 billion U.S. dollars in the fiscal year 2005-06, which ended in March, registering a new record high in 17 years since 1989 when the country began to move to the market-oriented economy.

With the total trade volume going up by over 12 percent from the previous year's 4.9 billion dollars, the export during 2005-06 reached 3.554 billion dollars, up from 2.9 billion dollars in the previous year, while the import was valued at 1.9 billion dollars, making not much difference comparatively.

During the year, a trade surplus of 1.6 billion dollars was gained with over 60 percent more than 2004-05's 954 million dollars.

Statistics also show that, in 2004-05, the private sector accounted for more than 85 percent in its exports and more than 80 percent of the gross domestic product which grew to 12.2 percent in the year from 12 percent in the previous year.

Source: Xinhua