A spokesman for Myanmar’s military junta ahead of the announcement said it was not worried about any new sanctions.
Zaw Min Tun told the state media channel MWD on Tuesday the country has experienced sanctions before and they will not face losses if there are new ones on Myanmar state-owned banks.
He said the United States was “just doing this to cause difficulties in economics and politics”.
“These kinds of things will cause unnecessary delays while we walk towards the multi-party democratic system.”
The Bangkok Business News, cited Thai sources as saying the sanctions would hit Thailand and other countries in the region financially because of their connections with local banks.
The US Embassy said it had regular conversations with the Thai government on Myanmar including how to mitigate the impact of any sanctions on Thailand or other countries.
Experts say the sanctions on the banks, while short of targeting gas projects that are a big source of revenue for the junta, could have an impact on the junta’s ability to fund its war against ethnic groups and insurgencies.
A February report by campaign group EarthRights International said the two banks were the Myanmar government’s “foreign currency treasuries” and were now under junta control.
It said the junta relied on foreign currency to buy jet fuel, parts for small arms production, and other supplies that could not be bought with the Myanmar kyat, EarthRights said.
“As a result, sanctions against MFTB and MICB could contribute substantially to cutting off the junta’s access to foreign currency, especially if combined with strong enforcement,” it said.
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