Donor agencies and international institutions made pivotal debt deals and assistance pledges with Myanmar in January. The agreements open the door for major development assistance and signal the donor community’s readiness to return to Myanmar after decades of isolation.
Here are some of the most striking figures from the January deals, certain to impact significantly Myanmar livelihoods:
60%
The percentage of Myanmar’s $11.3 billion in debt that creditors relieved in late January following a series of sweeping agreements. Members of the Paris Club, an informal group of creditors including the United States, the United Kingdom, and France, cleared $2.2 billion in loans and restructured the remainder of Myanmar’s debt to be paid over 15 years.
$3.58 billion
The amount of debt Japan announced on January 30 it canceled. Japan pledged to forgive this portion of its debt earlier this year. Japan also provided $900 million in bridge loans to settle Myanmar’s debt with the World Bank and Asia Development Bank (ADB). This will allow Myanmar to receive new development loans from these institutions.
Foot traffic on the U Bein bridge near Amarapura, Myanmar. Source: Morningdew2010’s flickr photostream, used under a creative commons license.
$440 million
The size of a loan the World Bank on January 22 approved to Myanmar to stabilize its economy, improve its investment climate, and strengthen its public financial management. By clearing the country’s debt with the International Development Association, the Reengagement and Reform Support Credit Program for Myanmar will normalize relations between Myanmar and the World Bank.
30 years
The length of time since the ADB stopped operations in Myanmar. The ADB announced January 28 it would resume operations in Myanmar for the first time in three decades with a $512 million loan. The loan will improve public finance, strengthen small and medium-sized enterprises, reform the central bank, and liberalize trade and investment.
400
The number of representatives from 30 governments, aid agencies, and multilateral institutions who signed in Naypyidaw January 19-20 the “Naypyidaw Accords” at the Myanmar Development Cooperation Forum, the country’s first major donor conference. The non-binding agreement pledged donor support for Myanmar’s ambitious reform agenda over the next several decades. Reforms will focus on education, investment, telecommunications, and transportation.
All monetary figures expressed in U.S. dollars unless otherwise noted.
