Roundup: IMF voices support for Myanmar gov't policies
YANGON, Feb 07, 2013 (Xinhua via COMTEX) --
The International Monetary Fund
(IMF) voiced support for Myanmar government's policies, saying
that in coordination with other development partners, it is
assisting the government in implementing them.
According to official media, IMF Mission Chiefs to Myanmar
Anoop Singh and Matt Davies have revealed plan of enhancing its
capacity building program including through increased support from
the regional technical assistance office, further disclosing that
IMF has intention to open a representative office in Myanmar.
IMF vowed to work closely in all of these areas with other
development partners, offering to assist Myanmar develop and
implement the policies to ensure macroeconomic stability and
strengthen reform under the Staff Monitored Program (SMP).
In light of bearing fruit with Myanmar's reform, the IMF chiefs
estimated that the growth of the country will accelerate to around
6.25 percent in the fiscal year 2012-13, bolstered by foreign
investment in natural resources and export of commodities.
"Inflation has declined rapidly and should remain moderate at
around 6 percent next year," the IMF mission chiefs predicted.
Acknowledging that Myanmar's exchange rate has been stable in
recent months with international reserve increasing to 4 billion
U. S. dollars, However, the IMF chiefs pointed out that a key
element of maintaining financial stability is ensuring that
policies are credible and enjoy the confidence of the population.
Stressing the need for the reform to be designed in a
structured and sequence manner, to be transparently communicated
to a wide range of stakeholders who should be given the
opportunity to contribute to policy development, the IMF chiefs
maintained that open monitoring of progress is also needed so that
the public and the private sector can observe success and adjust
to any slippages in the reform process.
Myanmar could reduce international debt of over 6 billion U.S.
dollars including that with Norway and Japan after successfully
coordinating with major creditor countries of the Paris Club in
Myanmar claimed on Jan. 30 clearing of its debt of 502.457
billion yens (over 5 billion dollars) owed to Japan since 1970
after settlement of the remaining debt of 198.881 billion yens (
nearly 2 billion U.S. dollars). That part of the arrears of 303.
576 billion yens (over 3 billion dollars) was announced by Japan
that it will be written off within one year period in support of
democratization and national reconciliation efforts as well as
economic and social reform process of the Myanmar government.
As a follow-up, the Japanese government announced that it would
take steps to offer very-low-interest rate development loan and
assistance to Myanmar which will use in people-centered
Meanwhile, Myanmar has also settled 512 million dollars' debt
owed to the Asian Development Bank (ADB) and 430 million dollars
owed to the World Bank by taking out the amounts from the Japan
Bank for International Cooperation (JBIC) on Jan. 25 and paid
back to the two creditors.
Obtaining new loans of the same amount from the two creditors
on the same day, Myanmar finally settled the debt by paying off
the bridge loan to JBIC.
ADB announced that it will assist in Myanmar's infrastructural
development in terms of technology, finance, communication and
sustainable energy, while the World Bank declared that it will
support Myanmar with 80 million dollars in carrying out national
community-driven development project for infrastructural
development in agricultural sector, roads, health centers and
schools of 640 villages across the country.
The Myanmar government's economic reform program is supported
by the International Monetary Fund (IMF) with a Staff Monitored
Program (SMP) currently providing a framework for cooperation
between the Myanmar government.
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