Loans are being forced on people in parts of southern Shan State by the Union Solidarity and Development Party (USDP) in an attempt to garner their support for regime-backed candidates in the forthcoming general elections in Burma, local residents alleged.

The USDP’s distribution of loans, when people have not asked for it has come in for criticism in Phe Khon village, southern Shan state. A local resident said that many villagers did not want to take the loans, because they have had bitter experiences regarding the loan process last year. They were forced to repay double the original amount within six months.

"Even though we do not want to take loans, they forced it on us. They USDP has been persuading people to take loans on high rates of interest known as "Candidates Cash," said a resident from Phe Khon.

The USDP made the offers to selected residents in the beginning of June and arranged for loans of 13,500 Kyat for a family. Similarly, a report in Kachin News Group said that USDP members have offered 5,000 Kyat to residents in Puta O Township in Kachin State in northern Burma.

The loan disbursement is part of the USDP's poll campaign. The forced loans and its process  will affect the people, said a Loikaw resident who is aware of the situation in Karenni state.

The USDP is a regime-backed party formed on April 29 by the Prime Minister, Gen Thein Sein, and 26 other ministers and senior junta officials. The party was recognized by the Election Commission on June 8.