Myanmar cleared about US$1 billion in overdue debt with the Asian Development Bank (ADB) and World Bank using a bridge loan from Japan, opening the door for increased lending as the country seeks to overhaul its infrastructure.
The ADB announced a $512 million loan, its first to Myanmar in more than 30 years, while the World Bank separately said it would lend $440 million to the Southeast Asian country. The funds will be used to pay back the Japan Bank for International Cooperation, which this month provided financing to Myanmar to clear arrears with the government-backed lenders.
"We need capital investment to do development and business," Maung Maung Thein, Myanmar's deputy finance minister, said by phone on Monday. "This will help for financing development work."
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