Report has it last Wednesday according to the Nikkei business daily, United States, Japan and major financial companies are set to begin discussions pertaining on the large scale debt reduction for Myanmar.
The reorganization could cause Myanmar to spend billions of yen specifically on loans. And as Nikkei said, this could cover the way for economic support as Myanmar moves directly on improving and striving its democracy system, reports from Reuters.
This would pave the way for Japan to continue again paying out yen loans to Myanmar which was stopped in 1987. The biggest source of Myanmar’s foreign aid is Japan’s 400 billion yen that’s equivalent to $4.95 billion in arrears accrued in the development assistance loans to the country.
Myanmar is indebted to the World Bank, the European Bank for Reconstruction and Development, Asian Development Bank and various multilateral lenders amounting to 100 billion in yen, the Nikkei said.
Some restrictions have been lifted by United States just last month to show support to institutions like Asian Development Bank which help in providing technical assistance and executing economic assessments to the new civilian government, source from Reuters.
Such reforms that have taken its toll are the releasing of hundreds of political prisoners, implementing freedom of expression and allowing democratic leader to run for a position in the parliament.
Japan is determined to help Myanmar in settling up the debts incurred to multilateral lenders. The only possible way the U.S. and other European nations would start lifting various sanctions if the conduct of elections this April 1st will be free, honest, peaceful and orderly election.