Myanmar Airways International (MAI) has said in a statement that the decision of Singapore’s United Overseas Bank (UOB) to close its bank accounts was unexpected.
The response came after announced on July 15 that it would close all five MAI accounts by Aug 15.
There have been recent reports and widely shared news about the decision to close the provisions of banking services by its principal banker in Singapore, a bank that has been continuously serving its accounts for the past six years without incidents. The decision to close the bank accounts was unexpected, the MAI statement said.
MAI respects the bank’s prerogative to terminate the business relationship with the airline, and MAI will endeavor to comply with provided timeline. MAI is grateful to UOB for its extension of the grace period without hesitation to find alternative banking services and support.
The bank’s decision came shortly after the publication of a United Nations report on Myanmar. As a member of the International Air Transport Association (IATA), MAI will continue to operate its domestic and international flights despite the economic sanctions and other challenges.
The Straits Times reported that UOB announced it would close all the five bank accounts of MAI by August 15 despite appeals by the airline to keep them open.
The airline will also have to stop using the bank to make payments to others by July 21, neither will anyone be able to make payments or transfer funds to the bank, except those from IATA.
After the Aug 15 deadline, any balance in the five MAI accounts will be “remitted”, said UOB in its correspondence with the carrier.
