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Germany signs agreement with Myanmar to forgive half of its 1 billion euro debt

Germany has signed an agreement to forgive half the 1.084 billion euro ($1.48 billion) debt it is owed by Myanmar, implementing a plan which Germany and other creditor nations accepted a year ago.

The state-owned Myanma Ahlin newspaper reported Tuesday that the agreement was signed the previous day in Myanmar's capital, Naypyitaw, during a state visit by German President Joachim Gauck, the first by a German head of state in 26 years. Germany's finance and development ministries confirmed the signing.

The Paris Club of 19 mostly Western creditor countries agreed in January last year on a debt forgiveness formula to help stabilize Myanmar's economy as it transitions to democracy after five decades of military rule.