Thailand
Chinese bank closes more than 100 Myanmar traders’ accounts
The Agricultural Bank of China in Yunnan province recently froze more than 100 accounts of Myanmar citizens, a trader in Muse, Shan State, who was one of those affected, has told The Myanmar Times.
The bank took the action on June 14 and 15 against Myanmar accounts that were being used to transfer payments between Chinese traders and Myanmar traders, according to U Tun Ko Ko.
On June 14, 65 accounts of Myanmar traders dealing in sugar, rice and maize through the border at Muse were frozen, containing an estimated 3 million yuan (nearly K600 million) in deposits, and 40 accounts were closed the next day, for no apparent reason, he said.
“Many of the accounts held money earned from exports of rice and sugar as well as payments for imports,” the trader said.
No prior notice of the closures was given to the Myanmar traders, The accounts had total deposits of several hundred million yuan (more than K400 billion), according to Myanmar Rice Federation vice chair Dr Soe Tun.
Myanmar exports pay an official 2 percent tax in Myanmar, but the trade is illegal in China. The Chinese government froze the bank accounts, which used letter of credit and telegraphic transfer payment methods, in an effort to control the illegal trade.
“It is money speculation. Many Myanmar traders sell to them in instalments. They buy rice and sugar from us because their country’s taxes are high. But they ferry our goods with government trucks when the goods arrive in China. They make arrests when payments are due. Sometimes we cannot get our money back,” the trader said.
Myanmar accounts were also frozen two months ago after drugs were allegedly found on a school bus in China. Some accounts were unfrozen after that action, but many are still blocked, he said.
“They close our accounts when the amount of money is large. The banks are working with their government. They (China government) do not bother the money being made from timber, jade etc which are exported illegally from our country. They carry sugar, rice, etc., by trucks from our side and we have already paid taxes on these goods. This should not be called illegal trading,” U Tun Ko Ko said.
The money in the bank accounts that were closed is not illegal money but was made from selling goods on which traders paid taxes in Myanmar. But the Yunnan government has banned some goods from being imported from Myanmar legally and has closed bank accounts before.
Traders from Muse, Mandalay, Yangon and other places will lose their money due to the accounts being closed, cross border trading will be suspended, workers in these businesses will be unemployed and state revenue will decline, Dr Soe Tun warned.
The Myanmar government must try to persuade China to reopen the bank accounts and to negotiate with Yunnan province and Dehong autonomous prefecture to reduce the number of agricultural exports being seized at the border, he added.
Muse district administrative officer U Kyaw Kyaw Tun said they have asked Shwe Li external affairs department to help 58 people who have reported their accounts being closed by China, they have asked China to reopen the bank accounts used by rice, beans and maize traders in Myanmar, and have sent a list of closed accounts to the Shan State government.
“We told the vice mayor of Shwe Li about it on Sunday. We said that this issue can affect trade. It is not good if it continues, so we have urged them to deal with it as soon as they can,” he said.
Source: http://www.mmtimes.com/index.php/business/26456-chinese-bank-closes-more-than-100-myanmar-traders-accounts.html