Myanmar forgiven $3.72 billion debt and received loans

Photo from Reuters

Myanmar’s 303.5 billion yen ($3.72 billion) debt and overdue charges have been forgiven by Japan follow by Myanmar president Thein Sein visits Japan and meets Prime Minister Yoshihiko Noda in Tokyo. Japan also will restart development loans to Myanmar, Reuters’ news report said.

The announcement was made Saturday by Prime Minister Yoshihiko Noda and President Thein Sein in a joint press conference after the six-way Japan-Mekong summit in Tokyo.

Japan is to help nurture Myanmar for its economic development as it just begins transitioning into democracy.

The two countries have agreed to set up the Thilawa Special Econimic Zone in Myanmar as an economic cooperation. This will give opportunity for Japanese corporations to takeover in the area of infrastructure projects in Myanmar as it begins to integrate in the international community as a result of recent reforms. This is a potential winning over Japan’s economy rival China as China is the largest investor in Myanmar.

Myanmar was isolated from the international community for haft century and since it has opened up to the world it becomes a new place for International Corporation to invest especially in the area of its untouched rich natural resources and new infrastructure projects.

President Thein Sein is the first person in Myanmar’s highest government level who has made an official visit to Japan in nearly 30 years.