ADB sets up interim partnership strategy
Play
But loans depend on the country's repayment of $500-million debt
The Asian Development Bank (ADB) has confirmed formulating an interim country partnership strategy for Myanmar for 2014, according to sources.
The confirmation, which came on October 26, is however not a clear indication that the ADB will resume its programmes, loans and projects for Myanmar. It depends on the country’s repayment of debt, which stands around US$500 million (Bt15.4 billion).
The country also owes nearly $400 million to World Bank.
Myanmar is expected to start repaying its debts owed to the ADB and the World Bank in January 2013.
Myanmar became an ADB member in 1973, seven years after establishment of ADB to facilitate economic development of countries in Asia.
ADB stopped its loans and technical assistances for Myanmar in 1988.
Japan will provide Myanmar $900 million as a bridge loan to help clear its debts owed to the WB and the ADB, Japanese Finance Minister Koriki Jojima said on October 11.
Danish Prime Minister Helle Thorning-Schmidt will be in Myanmar this month to open Denmark’s representative office in Yangon, a press statement said.
The Danish embassy in Thailand on October 31 said the premier will be meeting the ministers of the President’s Office – Aung Min and Soe Thin – before proceeding to Nay Pyi Taw.
In the capital, Thorning-Schmidt will be holding a meeting with Parliament members including Aung San Suu Kyi, the chairperson of the National League for Democracy.
Denmark is almost doubling its development assistance to Myanmar, with US$18 million in aid this year and $24 million next year.
With the boost in economic ties, many Danish companies are looking to Myanmar for investments and trade.
Meanwhile, several foreign companies are eyeing investments in the country’s forest sector, the Ministry of Environmental Conservation and Forestry said.
A Department of Forestry official said investors from Japan, South Korea, China, India and Thailand are planning to invest in teak and hardwood plantations, pulp mills, and wood factories.
“They are conducting field surveys to see if investing in the country is possible,” he said.
Myanmar, however, will be reducing its annual production of teak and hardwood, from 15 per cent to 20 20 per cent to save its forests.
The government will also be banning timber export by 2014. Myanmar has exported 371,000 tonnes of teak and over 1.7 million tonnes of hardwood from 2011-2012.
