Tuesday, September 25, 2012

Japan working with IMF to relieve Burma’s debt

Tuesday, 25 September 2012 12:48 Mizzima News

Japan, Burma’s biggest creditor, will try to work out a deal to offer Burma debt relief on the sidelines of the upcoming International Monetary Fund meeting in October in Tokyo, according to Japanese Finance Minister Jun Azumi.

Japanese Finance Minister Jun Azumi Photo: Photo: kantei.go.jp

Japan waived $3.7 billion in Burma’s unpaid debt in April, and the ministry said it is now working to provide a $900 million bridge loan to cover Burma’s arrears to the World Bank and the Asia Development Bank through a group of Japanese banks.

In August, a Japanese consortium signed a deal with Burma to jointly develop a special economic zone on the outskirts of Rangoon.

“We want to put the Myanmar arrears problem under debate during the IMF meeting and discuss it with other countries involved, explaining Japan's position on the issue,” Azumi told reporters in Tokyo.

“If we manage to forge a common view on the matter, Myanmar will be freed from economic restraints, and thanks to that, companies, including Japanese ones, will be able to move into Myanmar smoothly.”

Japan's Finance Ministry will host an international conference on Burma in Tokyo on Oct. 11 on the sidelines of IMF/World Bank annual meeting.

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