The Straits Times
Published on Jan 28, 2013

Myanmar secures debt relief worth almost $7.4 billion


YANGON (AFP) - Myanmar on Monday hailed a deal with international lenders to cancel nearly $7.4 billion of its debt, another milestone in the rapid transformation of the former junta-ruled nation.

The former pariah state also cleared its arrears to the World Bank and the Asian Development Bank (ADB) with the help of bridge loans from Japan, removing another key hurdle for the resumption of international aid.

The Paris Club of creditor nations said it had agreed at a meeting on Friday to write off half of Myanmar's debts to the group, with the remainder to be rescheduled over 15 years.

The club, an informal grouping of industrialised nations, praised Myanmar's "strong commitment" to economic reforms in a statement posted on its website on Monday confirming the deal.