Stable banking conditions are needed both now and in the future, say local business owners and entrepreneurs.
Most employees say they only took out enough money to last a week or two during payday because of the banks being closed, and this is a growing problem for many businesses.
“Some factories are also having difficulties meeting their delivery deadlines. Over the long term, these minor issues could have a significant impact on the company. Even if customers aren’t complaining now, they will in the future, according to one business owner.
Several others expressed concern about sanctions imposed by the United States against the military. Many state-owned banks lend money to private banks, which means that even though the sanctions are focused on military-owned businesses and cronies, the country’s cash flow will be affected.
There have been no banks open for business for over a week because bank employees have been participating in a nationwide protest against the military while away from their desks.
Businesses that have reopened do so with a more modest scope. “State-owned Myawady Bank reopened with security guards yesterday. It was previously closed. However, they were forced to shut down again because so many people withdrew money. When I went to withdraw money from Myawady Bank today, there were only 60 slots available.
The Myanmar Times has learned that up to 60 people can withdraw K1 million per day from state-owned bank branches, while 200 people can withdraw the same amount from the bank’s headquarters, according to our sources. The majority of private banks in the area are still shut.
More than a half-dozen private banks and a handful of foreign banks operating in Myanmar.