- The Thai Farmers Bank and Siam Ci

[suriya@xxxxxxxxxxxx]

BANGKOK (Oct. 19) XINHUA - The Thai Farmers Bank and Siam City
Bank have ruled out a plan to form a joint venture respectively with
Myanmar, citing lack of transparency in the country's foreign exchange
system.

Thai Farmers Bank's first executive vice-president Siripongs
Kalayanarooj said Monday that the bank has canceled a memorandum of
understanding to set up a bank in Myanmar, as there is so far no
transparency in exchange rate of Myanmar's local currency.

He told reporters that currently the Myanmar currency is traded at four
Myanmar kyat against one Thai baht on the black market, while the
official rate is at one kyat against four baht. This attracts growing
black markets resulting in uncertainty in investment.

Siripongs said another major reason was that the bank has no plan for
any new investment abroad for the time being.

Since the beginning of this year, the Thai Farmers Bank had closed down
many branches with poor performance abroad to reduce costs.

Meanwhile, a Siam City Bank executive said the bank has also canceled a
memorandum of understanding to form a joint venture with May Flower
Bank of Burma, citing the same reason as the Thai Farmers Bank.