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Bridge Loans to the Republic of the Union of Myanmar

By Japan Bank for International Cooperation  •  January 28, 2013

Promoting Medium-Long Term Development of Myanmar through Supporting Its Return to the International Financial Market

1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) provided bridge loans (short term bridging loans) with the Republic of the Union of Myanmar on January 17, about 512 million U.S. dollars to clear the arrears of past loans from the Asian Development Bank (ADB), and on January 25, 430 million U.S. dollars to also clear the arrears of past loans from the International Development Association (IDA), one of the World Bank Group.
2. The bridge loans were allotted for the clearance of such arrears, and subsequently, the new program loans for the purpose of social and economic development were made to Myanmar from ADB and IDA, respectively. Then, the Government of Myanmar repaid JBIC each bridge loan with the proceeds of the above program loans.
3. Upon the request from the Government of Myanmar, the bridge loans were made with the authorization of the Minister of Finance of Japan, based on the Japan Bank for International Cooperation Act. It is important to normalize the relationship between Myanmar and the international organizations through these bridge loans in order for Myanmar to return to the international financial market. This will also contribute to stability and development of Myanmar and the neighboring area.
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This post is in: Aid and Development

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