One Week Before The Military Coup, Myanmar Received $ 350 Million In Cash Assistance

Myanmar military leader General Min Aung Hlaing (Source: True News Information Unit via myanmar-now.org)

JAKARTA - A week before the Myanmar military coup on Monday, February 1, the International Monetary Fund (MF) had just sent cash worth 350 million US dollars to the Government of Myanmar.

The funds are an unconditional emergency aid package from the IMF, to help Myanmar fight the coronavirus pandemic. The funds were approved by the IMF Board on January 13. And, there is little chance that the IMF has to withdraw the funds whose deliveries were completed last week.

“We are closely following the ongoing developments. We are very concerned about the impact of events on the economy and people of Myanmar", an IMF spokesman told Reuters.

In a statement on January 13, the IMF said the funds were to help Myanmar meet the urgent balance of payments needs arising from the COVID-19 pandemic. Mainly to support the government's steps to restore macroeconomic and financial stability, while supporting the affected sectors and vulnerable groups.

In contrast to the regular IMF financing program which has performance benchmarks. Emergency assistance was provided quickly, with no way to withdraw it.

Unlike the IMF's regular financing program, which has performance benchmarks, emergency assistance is delivered quickly, with no way to withdraw it.

"This is not a negotiated program, there are no conditions and there is no forward-looking disbursement associated with the review", said Stephanie Segal of the Center for Strategic and International Studies in Washington.

"I do not know of any precedent in which money that has been approved by the IMF board can be withdrawn", added the former IMF economist and US Treasury Department official.

Sources familiar with the IMF fund payment process regretted the time the funds were disbursed to Myanmar. They highlight the risks of using broad discretion to spend the aid.

In a best-case scenario, the Government of Myanmar recovers from the current political turmoil and the funds are used appropriately.

To note, the IMF has provided emergency financing for the coronavirus for Myanmar amounting to 700 million US dollars for the past seven months.