Japan grants $503m new loans and forgives $1.74b debt to Myanmar

Photo: Karen News

The government of Japan approved to grant new development loans to Myanmar in the amount of $503 million in fresh development loans while calling for the cancellation of the remaining debt from pre-1988 contracts amounting to $1.74 billion last Sunday, AP news reported.

Japan's Prime Minister Shinzo Abe signed the agreement in Myanmar's capital, Naypyitaw before his three day visit ended. Some of the new aid will be funded to the development of the 2,400-hectare (5,900-acre) Thilawa Special Economic Zone.

According to Japanese Ministry of Foreign Affairs, new terms were considered after Myanmar had met certain conditions, including a series of political and economic reforms. The government of Japan will certainly support whatever reforms the government will take for the benefit of the country and the whole populace.

Nobel Peace Prize winner and democratic leader Aung San SuuKyi also met with Shinzo Abe in Yangon last Saturday, the report said.

Original source: http://www.betweenonline.com/2013/05/27/japan-grants-503m-new-loans-and-forgives-1-74b-debt-to-myanmar/