The United States relaxed sanctions on four large banks in Burma on Friday, allowing them access to the US financial system as a reward for the country’s political reforms.
The Treasury Department issued a general license to the Myanma Economic Bank, Myanma Investment and Commercial Bank, Asia Green Development Bank and Ayeyarwady Bank.
A general license eases restrictions and lets the banks deal with US citizens and companies, but leaves sanctions laws on the books, giving Washington leverage should Burma start to backslide on reforms.
The Asia Green Development Bank headquarters on Prome Road in Rangoon. The bank is owned by former military junta’s business crony Tay Za.
“Increased access to Burma’s banking system for our companies and non-governmental organizations will help to facilitate Burma’s continued social and economic development,” said David Cohen, the Treasury undersecretary for terrorism and financial intelligence.
The United States still uses the traditional two-syllable name for the Southeast Asian country.
The announcement on Friday follows a similar move last July, when the US Treasury issued general licenses allowing US companies to invest in and provide financial services to Burma, as long as they make detailed disclosures about their dealings.
The United States, the European Union and others have gradually loosened restrictions on Burma in the last two years after the country started to open up its political system and freed hundreds of political prisoners.
Burma’s leaders say sanctions have stifled their attempts to revive the economy and lift the resource-rich country out of poverty.
Sanctions have also been suspended or lifted by other developed countries, including Canada, Australia and Japan.
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US Lifts Sanctions On 4 Burmese Banks
