Days before the military coup, the International Monetary Fund (IMF) sent $350 million to Myanmar as part of the Covid-19 emergency aid project.
The money was sent by the IMF to money transactions under the emergency assistance package. There are no conditions for spending this money.
A few days later, the country’s military regained power. Other Democratic leaders including Aung San Suu Kyi have been arrested. Now the question is, will the IMF want this money back? International financiers say it is difficult for the IMF to recover the money unconditionally.
An IMF spokesman told Reuters: “We are monitoring the situation. We are concerned about the impact it will have on the economy and the people. ” At the same time, he confirmed to Reuters that the money was sent to Myanmar last week.
New US President Joe Biden has just taken power. Myanmar’s military coup has been described by analysts as his first international crisis. He has already threatened to impose sanctions on the generals. The country’s foreign ministry said aid to Myanmar would be reviewed.
The United States is one of the largest partners in the IMF. In the last seven months, the IMF has sent $700 million in emergency aid to Myanmar, including $350 million last week.
Stephanie Seagal, a former IMF economist, told Reuters: There is no condition for this money. I don’t know if there is any precedent that the IMF has taken back the money after giving it once.
Emergency assistance money can be used for any purpose as there are no conditions. There is a kind of concern in the international arena about the use of this money.
However, something like that may not happen again. Analysts say Myanmar’s new government will not seek to worsen relations with the IMF. They can use this money properly.
Concerned individuals hope that Myanmar’s central bank will be able to maintain its apparent independence. However, on Tuesday, shortly after the coup, the country’s military ruler appointed Thanh Nien as the new governor of the central bank.
Earlier, when the military government was in power from 2007 to 2013, Thanh Nien was still the governor of the central bank. The IMF usually works directly with a country’s central bank.
Meanwhile, the World Bank has provided $150 million in assistance since the epidemic. They have expressed deep concern over the military coup. They have expressed concern that this could hamper the development of the country.