IMF sent Myanmar $350 mln in emergency aid days before coup to help fight COVID-19
February 3, 2021, 11:25 am

IMF sent Myanmar $350 mln in emergency aid days before coup to help fight COVID-19

A screen grab from Myanmar state television footage, broadcast on February 2, 2021, shows General Min Aung Hlaing speaking during a meeting. (Reuters)

The International Monetary Fund last week sent $350 million in cash to the Myanmar government, part of a no-strings-attached emergency aid package to help the country battle the coronavirus pandemic.Days later, military leaders seized power and detained elected leader Aung San Suu Kyi and other elected officials, in what the US State Department said on Tuesday constituted a coup.There appears to be little the IMF can do to claw back the funds, part of rapid-disbursing COVID-19 financing programs with almost no conditions and approved by the IMF board on January 13, sources familiar with the payments and international finance experts said.

“We are following the unfolding developments closely. We are deeply concerned about the impact of events on the economy and on the people of Myanmar,” an IMF spokesperson said in a statement emailed to Reuters on Tuesday, confirming the payment was completed last week.

A child holds a picture of leader Aung San Suu Kyi outside the United Nations venue after the military seized power in a coup in Myanmar, in Bangkok, Thailand, on February 3, 2021. (Reuters)

US President Joe Biden, facing his first international crisis since taking office less than two weeks ago, has threatened new sanctions against the generals, and the State Department said it would review its foreign assistance to the southeast Asian country.

The United States is the dominant shareholder in the IMF, which has provided Myanmar with $700 million in emergency coronavirus financing over the past seven months, including last week’s payment, which included $116.6 million through the IMF’s Rapid Credit Facility and $233.4 million through the Rapid Financing Instrument.

The Fund said in a statement on January 13 the money would help Myanmar meet “urgent balance-of-payments needs arising from the COVID-19 pandemic, especially the government’s recovery measures to ensure macroeconomic and financial stability while supporting affected

sectors and vulnerable groups.”

Myanmar citizens hold a picture of Myanmar's army chief Min Aung Hlaing with his face crossed out after the military seized power in a coup in Myanmar, outside United Nations venue in Bangkok, Thailand February 3, 2021. (Reuters)

Unlike the IMF’s regular financing programs, which disburse funds in smaller increments as performance benchmarks are met for agreed policy reforms, coronavirus emergency aid has been sent quickly, often all at once.

“It’s not a program that was negotiated, there isn’t conditionality and there aren’t forward-looking reviews with disbursements tied to those reviews,” said Stephanie Segal, a former IMF economist and US Treasury official now with the Center for Strategic and International Studies in Washington.

“I’m not aware of any precedent where money that’s been approved by the IMF board can be recalled,” Segal added.

Since the beginning of the COVID-19 crisis last year, the IMF has provided emergency financing to 80 countries.

The timing of the latest disbursement to Myanmar was unfortunate, two sources familiar with the payments said, and pointed to the risks of using rapid financing that gives governments broad discretion over how they spend the money.

The best-case scenario is that the Myanmar government that emerges from the current political turmoil will spend the money appropriately because it wants to have a productive relationship with the Fund, one of the sources said.

The IMF’s counterparty in Myanmar is the Central Bank of Myanmar, and the source expressed hope it can maintain its independence from the country’s finance ministry.

But on Tuesday, the ruling Myanmar military appointed Than Nyein as the country’s new central bank governor, reinstating him to a post he previously held between 2007-2013, during the rule of the last junta.

The World Bank, which has provided more than $150 million in financing to Myanmar since the pandemic started a year ago, said on Monday it was gravely concerned about the military takeover, warning it risked a major setback to the country’s transition and its development prospects.

source: Reuters

Image source: Reuters

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.