The Asian Development Bank (ADB) is providing letter of credit (L/C) guarantees to Myanmar's Cooperative Bank.

The guarantees come as international sanctions on Myanmar are eased as the country moves towards democracy and a market economy.

L/C restrictions

Traders in Myanmar have been unable to use L/Cs for years because sanctions imposed on the country by Washington effectively allowed the US to seize funds being transferred in or out of the Asian country.

Sanctions on Myanmar's funds transfers have not been fully removed, but the country is clearly sufficiently confident now to allow at least a limited range of international transactions.

L/C access

The Cooperative Bank claims to be the first Myanmar bank guaranteed by an international institution for L/C transfers.

Previously, traders in Myanmar requiring L/Cs ran bank accounts in Singapore to access a range of banking services unavailable locally.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.