1. From the perspective of promoting Myanmar’s democratization, national reconciliation, and economic reforms, and assisting Myanmar’s early reengagement with international community, the Government of Japan has been leading the discussion on Myanmar. In October 2012, Japan hosted the Meeting on Myanmar in Tokyo. On January 30, 2013, Japan implemented the operation agreed upon by both the governments of Japan and the Republic of Union of Myanmar in April 2012, in order to address Myanmar’s debt issue related to Japan’s past Yen loan.

2. Overview of this operation

• (1)Payments whose due had fallen before March 2003(JPY 198.9 billion in total (Principal: JPY 159.8 billion, Interest: JPY 39.1 billion)
  • (a) “Bridge Loan” is used for an ultra short-term commercial loan to clear this category of debts, while Japan provides the “Social and Economic Development Support Program(Program Loan)” for a quick-disbursing long-term concessional loan (Yen Loan).
  • (b) Program Loan is rendered in light of supporting the strengthening of the base of comprehensive economic growth and Myanmar’s reform, through the assistance for the new Myanmar Government's reforms in various fields including Macroeconomic management, Education and Health, Governance, and among others.
  • (c) Provisions of the Program Loan
    -Interest rate: (0.01%)
    -Repayment period: 40 years (including a grace period of 10 years)
  • (d) A set of policy actions and reforms implemented by Myanmar will be jointly monitored by the two countries.
• (2) Payment whose due falls after April 2003 (JPY 127.4 billion in total (Principal: JPY 113.7 billion, Interest: JPY13.7 billion) Japan has resumed the procedures to cancel this category of debts, as was conveyed to the Myanmar side in December 2002.

3.These measures were taken based upon the conceptual approach agreed between both countries, in consideration of the recent Myanmar’s efforts in democratization, national reconciliation, and economic and social reforms.

The Government of Japan believes that it is important to continue to support reform efforts of the Government of the Republic of the Union of Myanmar, and in this respect, Japan will implement its development assistance to Myanmar in wide range of areas including resumption of new ODA loans for the sustainable economic development of Myanmar. At the same time, Japan is determined to continue to take a leading role in the international community for the effective implementation of foreign assistance to Myanmar.