Japan together with the Asian Development Bank and the World Bank will clear overdue debts that Myanmar owed them next January.

The decision was announced by Japanese Finance Minister Koriki Jojima at a meeting between Myanmar and its main creditors in Tokyo on October 11.

He said the move will pave the way for the international community to start providing development assistance to the Southeast Asian country as well as accelerate the country’s efforts of reform and integration into the international community.

The minister said Japan, Myanmar's largest creditor, will clear the arrears and resume JPY-denominated concessional loans to Myanmar at the earliest time possible next year.

He added that under the arrears clearance operation, Japan is likely to provide bridge loans for Myanmar through the Japan Bank for International Cooperation next January under the condition that Myanmar continues its renovation efforts.

The new aid will be channeled for road and power improvement, rural and port area development which are suitable for Myanmar ’s development strategy.

Japan announced in April this year that, of the approximately 500 billion yen owed by Myanmar as a result of its delayed repayment of past loans, Tokyo will forgive about 300 billion yen, becoming the first creditor country to make such a move.

ADB and WB are the second and third largest creditors of Myanmar , with debts being 500 million USD and 400 million USD, respectively.

Myanmar also owed money to Germany , Denmark and France .

Addressing the meeting, which was held on the sidelines of the annual meetings of the WB and the International Monetary Fund, Myanmar Finance Minister Win Shein expressed his appreciation to Japan and other creditors.

He said addressing the debt issue in a comprehensive way is important for Myanmar to engage in the international community.-VNA