France clears Myanmar 50% of debt

France clears Myanmar 50% of debt

France has signed an agreement with Myanmar in Nay Pyi Taw on clearing 550 million U.S. dollars or 50 percent of the 1.1 billion dollars' debt which Myanmar owes to the European country in accordance with the Paris Club meeting in January, the Union Daily reported Thursday.

The agreement was signed by Myanmar Minister of Finance U Win Shein and visiting French Foreign Trade Minister Nicole Bricq on Wednesday.

The arrears of the debt of 550 million dollars are set to be repaid in 15 years at an interest rate of 2 percent, the report said, adding that France's debt relief would help Myanmar stabilize and develop its economy in line with its reform process.

The two sides also held talks on France's investment in Myanmar, financial and monetary matters and cooperation between the two countries.

Myanmar and creditor countries of Paris Club reached an agreement in Paris between them in January on comprehensive treatment of Myanmar's public external debt.

Under the Jan. 25 agreement, Myanmar obtained nearly 6 billion dollars' debt relief or 60 percent of the total debt from the Paris Club creditor countries.

xinhuanet