France will clear 550 million USD or 50 percent of Myanmar’s debt owed to the European country.

An agreement to this effect was signed by Myanmar Minister of Finance U Win Shein and visiting French Foreign Trade Minister Nicole Bricq in Naypyidaw on July 31 in accordance with what was reached at the Paris Club’s meeting earlier this year.

Under the agreement, the outstanding debt is set to be repaid in 15 years at an interest rate of 2 precent. France’s debt relief will help Myanmar stabilise and develop its economy in line with its reform process.

Myanmar and creditor countries of the Paris Club reached an agreement on the comprehensive treatment of Myanmar’s external debt in France’s capital city in January.

The January 25 agreement saw Myanmar obtain debt relief of nearly 6 billion USD (60 percent of total debt) from the Paris Club nations.-VNA