Japan prepares to resume yen loans for Myanmar

 Japanese government plans to offer debt relief to Myanmar and prepare for a resumption of yen loans, which were suspended in 1987.Japan aims to assist economic development by helping Myanmar modernize its infrastructure. This will in turn provide business opportunities for Japanese companies.

Delegates from Japan's foreign and finance ministries will visit the capital Naypyidaw on Tuesday, to meet government officials.Myanmar now owes Japan about 500 billion yen, or about 6 billion dollars, in unpaid loans and interest.Japan plans to forgive about 1.5 billion dollars in loans. It also hopes to be repaid from Myanmar's foreign reserves and refinance loans with Japanese banks.

In the future, Japan plans to work with other creditors, including the World Bank and Asian Development Bank, to reduce Myanmar's debt.If an agreement is reached next week, government officials plan to discuss the resumption of yen loans with Myanmar's President Thein Sein during his visit to Japan next month.