International lenders said they are considering resumption of loans to Myanmar, a move that shadows the US’ steps in lifting sanctions as reforms further open up the once isolated economy.
The World Bank and Asian Development Bank will discuss whether they would resume loans to Myanmar on the sidelines of the International Monetary Fund’s annual meetings on Oct. 11 in Tokyo, Asahi Shimbun reports. Loans to the country have been suspended since the 1988 military coup. Myanmar’s unpaid debts to the World Bank and ADB amounts to $400 million and $500 million respectively.
Japan is expected to call on nations to lend a hand to the Southeast Asian country by seeking a debt relief for Myanmar during the talks, Japanese Finance Minister Jun Azumi said. Japanese financial institutions are working to provide a $900 million bridge loan to cover Myanmar’s delinquent loans to the World Bank and ADB, Reuters reports. Tokyo have also waived $3.9 billion of Myanmar’s debt to Japan in April.