Myanmar's billion-dollar debt is forgiven

Japan has just considered canceling the country's debt of up to 3.7 billion USD, while the World Bank (WB) and the Asian Development Bank (ADB) have also agreed to waive nearly 1 billion USD in debt.

Japanese Finance Minister Koriki Jojima (right) shakes hands with his Myanmar counterpart Win Sein on October 11 - Photo: Wall Street Journal

AP reported on October 11 that G7 financial leaders at the annual meeting of the International Monetary Fund (IMF) and the World Bank in Tokyo proposed debt relief and aid solutions for Myanmar.

Japan will extend Myanmar's $6 billion in outstanding debt and forgive 60 percent of it, or $3.7 billion, and use temporary loans from Japanese banks to gradually help Myanmar clear its debts, Japanese Finance Minister Koriki Jojima said.

In addition, Japan will continue to provide aid to Myanmar in building infrastructure such as electricity, roads, ports and rural development.

ADB announced to cancel 500 million USD debt and WB also agreed to forgive 450 million USD debt for Myanmar.

The US has agreed to allow international financial institutions such as the World Bank to facilitate loans to Myanmar and to lift most sanctions imposed decades ago when Myanmar was still under military rule.

These decisions will help Myanmar overcome economic difficulties to implement reforms. Myanmar Finance Minister Win Shein said they have planned clean macroeconomic management such as setting up a modern banking system, foreign exchange market and reforming the national budget.

Myanmar President Thein Sein introduced political and economic reforms in 2011 after nearly half a century of military rule. Now his big goal is to attract foreign investment to boost agricultural productivity and build up industries.

According to Tuoi Tre - DT