Bank closure hits Indo-Myanmarese trade

Tuesday, 04 March 2003, 20:30 IST
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NEW DELHI: The closure of a bank in Myanmar has dealt a severe blow to the country's trade with India. The closing down of the Burma Economic Bank in Tamu, Myanmar, last week has already led to large losses in trade, according to the India-based Mizzima news agency. Indo-Myanmar Traders Union vice president W.N. Singh said the closing down of the bank strongly affected traders on both sides. "According to reports, the Burmese (Myanmarese) traders are also worried over the developments but they are prevented from protesting," he said. The union facilitates export and import under a trade agreement between India and Myanmar. Singh called for "immediate steps from both countries" to undo the damage to bilateral trade from the bank's closure. According to Singh, Myanmarese traders had yet to clear dues to Indian businessmen because of the bank's closure. Furthermore, revenue losses to both India and Myanmar could be anticipated. The Indo-Myanmar trade agreement was signed in 1994. In its wake, the volume of trade between the two countries has increased significantly. Two other trade groups -- the Indo-Myanmar Friendship Organisation and the Associated Chambers of Commerce -- have also expressed concern over the Burma Economic Bank's closure and appealed to Myanmar's ruling junta to take steps to reopen it. "Trade is the lifeline of the people living along the international border and hence the junta should take immediate step in this regard," said an Indian trader.
Source: IANS