Japan to write off $3.58 billion in Myanmar debt to encourage reforms
{{#rendered}} {{/rendered}}Japan says it is canceling 326.3 billion yen ($3.58 billion) in debt owed by Myanmar to encourage reforms.
A Japanese Embassy statement Wednesday says the move is intended to help Myanmar's efforts in democratization, national reconciliation and economic and social reform.
Myanmar accumulated $8.4 billion in foreign debt during the socialist regime of the late Gen. Ne Win from 1962 to 1988, and $2.61 billion under the military junta that took over in 1988. An elected government took power in 2011.
{{#rendered}} {{/rendered}}The World Bank announced Sunday that the Japan Bank for International Cooperation, Japan's overseas development bank, will provide a bridge loan to Myanmar to cover outstanding debt to the World Bank and the Asian Development Bank totaling about $900 million. That will allow them to provide new development loans.