The World Bank will resume lending to Myanmar for the first time in 25 years in a show of encouragement for economic and political reforms in the country, Financial Times reports.
The World Bank’s investment arm, the International Finance Corporation, and the Asian Development Bank opened offices in Yangon on Wednesday. The ADB also opened an office in Naypyidaw.
Japan led the way for financial institutions to help Myanmar with Tokyo’s plans to extend bridging loans worth $900m to Myanmar. In addition, Japan decided to forgo about $3.7 billion in debt.
World Bank vice-president for East Asia and Pacific Pamela Cox announced $85m in develop grants for community projects ahead of the arrears clearance and lauded a bridging loan from Japan as a solution for facilitating the clearance. “I think certainly the government is committed to reform, I said very clearly that for us to continue on the path of engagement, they need to continue on the reform path – that is the message we gave to the president and all the ministers,” she added.
