Monday, January 28, 2013

World Bank to clear Burma’s debt

Monday, 28 January 2013 12:35 Mizzima News

The World Bank announced on Sunday that it would partner with the Asian Development Bank to clear Burma's old debts. In the deal signed with the Japan Bank for International Cooperation, a loan will be provided to cover Burma's outstanding debt of US $900 million.

World Bank headquarters, Washington DC. (Photo: World Bank)

“Myanmar has come a long way in its economic transformation, undertaking unprecedented reforms to improve people’s lives, especially the poor and vulnerable,” said Annette Dixon, the World Bank's Burma Country Director.

“Much work remains to be done. We are committed to helping the government accelerate poverty reduction and build shared prosperity. The Bank’s engagement, together with the ADB, the Government of Japan and other partners, will help attract investment, spur growth and create jobs.”

On January 22, the World Bank approved a $44 million “Re-engagement and Reform Support Credit” to Burma. The Bank has also provided an $80 million grant for the National Community Driven Project to develop rural infrastructure.

The New York Times reported that this latest deal was likely to draw international criticism as Burma's military continues its campaign against Kachin rebels.
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