Myanmar’s shadow government plans to issue “sovereign bond” worth $1 billion to counter junta

Photo: Win Hlaing

Myanmar’s shadow government National Unity Government of Myanmar, or NUG, which has been set up as a pro-democracy group opposing the February 1  military coup and the subsequent rule of the military in the country, is seeking to raise $1 billion through “government bonds” it plans to issue via foreign banks, Nikkei Asia wrote.

According to an announcement by NUG on November 4, the fund raising would support it to establish itself as the “legitimate government” of Myanmar as the military is currently faced with massive economic problems arising from international sanctions, a devaluation of the local currency, frozen bank accounts and a shortage of foreign currencies, all on top a badly managed Covid-19 crisis.

NUG said that in addition to issuing bonds, it would also start selling “state lottery tickets” and collect income and corporate taxes from citizens and businesses. Funds raised through the bond issuance and other means would be used to support those who have lost their jobs by participating in the resistance movement, officials noted.

Zero bonds with a two-year term

The dollar-denominated papers worth a total of $1 billion would be issued as zero-bonds by mid-November with a redemption period of two years, targeting mainly impact investors among the Myanmar diaspora. NUG did not mention which foreign financial institutions would be involved in the transaction.

NUG urged citizens and businesses to pay their taxes online to NUG instead of paying them to the military authorities. Of the expected revenue, $800 million are earmarked for health care, education and humanitarian aid.

Lottery tickets as means of funding opposition

The planned sale of NUG-backed lottery tickets is another sign of civil disobedience as Myanmar people are encouraged not to buy government-issued lottery tickets anymore, which would raise funds for the military.

The Myanmar junta, for its part, has designated NUG a “terrorist organization,” but this has not tuned down the strong resistance among the country’s democracy-seeking citizens.



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[caption id="attachment_37761" align="alignleft" width="300"] Photo: Win Hlaing[/caption] Myanmar’s shadow government National Unity Government of Myanmar, or NUG, which has been set up as a pro-democracy group opposing the February 1  military coup and the subsequent rule of the military in the country, is seeking to raise $1 billion through “government bonds” it plans to issue via foreign banks, Nikkei Asia wrote. According to an announcement by NUG on November 4, the fund raising would support it to establish itself as the "legitimate government" of Myanmar as the military is currently faced with massive economic problems arising from international sanctions, a...

Photo: Win Hlaing

Myanmar’s shadow government National Unity Government of Myanmar, or NUG, which has been set up as a pro-democracy group opposing the February 1  military coup and the subsequent rule of the military in the country, is seeking to raise $1 billion through “government bonds” it plans to issue via foreign banks, Nikkei Asia wrote.

According to an announcement by NUG on November 4, the fund raising would support it to establish itself as the “legitimate government” of Myanmar as the military is currently faced with massive economic problems arising from international sanctions, a devaluation of the local currency, frozen bank accounts and a shortage of foreign currencies, all on top a badly managed Covid-19 crisis.

NUG said that in addition to issuing bonds, it would also start selling “state lottery tickets” and collect income and corporate taxes from citizens and businesses. Funds raised through the bond issuance and other means would be used to support those who have lost their jobs by participating in the resistance movement, officials noted.

Zero bonds with a two-year term

The dollar-denominated papers worth a total of $1 billion would be issued as zero-bonds by mid-November with a redemption period of two years, targeting mainly impact investors among the Myanmar diaspora. NUG did not mention which foreign financial institutions would be involved in the transaction.

NUG urged citizens and businesses to pay their taxes online to NUG instead of paying them to the military authorities. Of the expected revenue, $800 million are earmarked for health care, education and humanitarian aid.

Lottery tickets as means of funding opposition

The planned sale of NUG-backed lottery tickets is another sign of civil disobedience as Myanmar people are encouraged not to buy government-issued lottery tickets anymore, which would raise funds for the military.

The Myanmar junta, for its part, has designated NUG a “terrorist organization,” but this has not tuned down the strong resistance among the country’s democracy-seeking citizens.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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