Japan grants over 400 million USD worth of low-interest loans to Myanmar

Visitors explore the local SMEs products at an event held in Myanmar (Photo: mmtimes.com)

Japan and Myanmar on November 8 signed low-interest loans worth a total of 42.78 billion JPY (414 million USD) to help the Southeast Asian country build road infrastructure and finance small- and medium-sized enterprises (SMEs).

According to the Japanese Foreign Ministry, of the total, 27.78 billion JPY will be earmarked for a project to build a bridge on a road in the East-West Economic Corridor, a route that crosses Myanmar, Thailand, Laos and Vietnam.

Since the volume of trade with Thailand, the largest trading partner with Myanmar, is expected to continue to increase, it is essential to develop the East-West Economic Corridor to enhance the logistics sector's efficiency, the ministry said.

The remainder of the loans will be set aside to allow SMEs in Myanmar to obtain funds for stabilising their business activities and expanding operations.

The COVID-19 pandemic has dealt yet another blow to such companies with insufficient cash on hand.

The loans will help mitigate the economic impact of the virus on sound development of Myanmar's industrial and business sectors, and create and retain employment./.

VNA