Jan 30, 2013

Myanmar obtains nearly 6 bln USD debt relief from Paris club creditors

Myanmar has obtained 5.925 billion U.S. dollar debt relief from Paris Club creditor countries, announcing that the government will use the resources made available by the debt relief in schools, hospitals and poverty reduction programs and pledging to step up a vigorous reform process under the Framework of Economic and Social Reform, official media reported Monday.

Under the agreement between Myanmar government and Paris Club creditor countries reached on Jan. 25, the creditors delivers an exceptional treatment providing a cancellation of 50 percent of the total of arrears due to the Paris Club creditors in nominal terms in two phases with the remaining amount to be rescheduled over 15 years including a 7-year grace period.

Myanmar government's economic reform program is supported by the International Monetary Fund (IMF) with a Staff Monitored Program (SMP) currently providing a framework for cooperation between the Myanmar government.

According to a press release of the Myanmar Ministry of Finance and Revenue on Monday, the government has taken out loans from the Asian Development Bank (ADB) to fund the state building projects.

It has taken out 512 million U.S. dollars from Japan International Cooperation Bank (JICB) and paid back the ADB ensuring that Myanmar could finally settle the debt by paying off the bridge loan to JICB the same day it obtained a loan of 512 million U.S. dollars, the largest amount it received in 30 years from ADB.

Source: Xinhua


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