Junta fills coffers with private bank magnates’ bond purchases

Private domestic banks, whose assets consist largely of money deposited by ordinary Myanmar citizens, are effectively using the public’s money to fund the military council’s war effort

Lacking sufficient revenue to fund its expenditures on the military, the Myanmar junta has turned to borrowing, relying on its cronies’ purchases of treasury bonds to cover the costs. 

Myanmar’s military regime has been forced to resort to this new source of financing amid a miscellany of economic woes since the military coup of 2021: the departure of major multinational companies, suspension of foreign development aid and loans, decline in manufacturing production, decrease in export earnings, absence of investment from abroad, and the choking off of once-reliable revenue channels by international sanctions. 

Myanmar Now has found that some of the country's largest domestic private banks have been collaborating with the military council–against their own apparent economic interests–by buying treasury bonds worth billions of Myanmar kyat.

Treasury bonds and treasury bills serve as a means to borrow money from the public by selling interest. . .

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