£2.3bn debt reprieve to help rebuild Burma

JAPAN: The government said it will forgive about 300 billion yen (£2.3bn) of Burma’s debt to support the country’s democratic and economic reforms.

It made the announcement yesterday after a meeting between Japanese prime minister Yoshihiko Noda and Burma’s president Thein Sein, right.

It said Japan will cancel 127.4bn yen in loans due after April 2003. It will also forgive 176.1bn yen in overdue charges accumulated over two decades as the countries jointly monitor reforms.

Burma’s military junta last year handed power to a nominally civilian government that has carried out political and economic reforms.

Japan does not have sanctions on Burma, although it cut most government aid in 2003.