Debt-Relief Measure for Myanmar
May 26, 2013
- On May 26 (same date local time), Mr. Mikio Numata, Ambassador Extraordinary and Plenipotentiary of Japan to the Republic of the Union of Myanmar, and H.E. Dr. Lin Aung, Deputy Minister for Finance and Revenue of the Republic of the Union of Myanmar, exchanged notes between the Government of Japan and the Government of Myanmar concerning a debt-relief measure (in the form of debt cancellation) in Naypyidaw.
The content of the debt-relief measure (in the form of debt cancellation) is as follows:
(1) Debts to be cancelled:
Part of the yen loan claims that Myanmar owes to the Japan International Cooperation Agency (JICA).
(2) Total amount of the claims to be cancelled:
(a) Overdue charges: (it has accumulated during the past two decades: About 176.1 billion yen, fixed as of the end of March 2012).
(b) Principal having fallen or falling due on or after April 1, 2012: About 12.5 billion yen.
Overdue charges were incurred on the portion of the principal and interest of the relevant claims that Myanmar did not repay in line with the date of repayment, based on an initial agreement concerning yen loans provided to Myanmar.
- This debt-relief measure will be carried out on the basis of a Japan-Myanmar Summit Meeting last April etc.
- The Government of Japan considers it important to continue to back up the progress of Myanmar’s reforms and will continue its support to Myanmar.