Foreign Minister Giulio Terzi and his colleague from Myanmar, U Wunn Maung Lwin, have signed two agreements, on debt restructuring and the conversion of the residual amount. The agreements were signed in Rome during President Thein Sein’s official visit.
Concrete support at the political level
“These two important instruments will make it possible to increase Italy’s cooperation initiatives on
behalf of Myanmar. A country with which we intend to provide concrete support, both at the political level and by fostering its growth and development prospects”.
Italy has played a particularly active role in encouraging the Multilateral Agreement between Myanmar and its Paris Club creditors. The agreement has now been implemented in Italy, through the first of the two Agreements signed in Rome today. The Paris Club agreement envisages the cancellation of 50% of the arrears due to creditors in nominal terms and a rescheduling of the remaining amounts over 15 years, including a 7-year grace period.
Development projects and aid credits
The bilateral debt conversion agreement was made possible by the successful signing of the multilateral agreement. Amounting to around 3 million dollars, it will enable Italy to fund development projects and provide aid credits worth up to 20 million euros for projects in the agricultural and food safety sectors.
Italy’s strong interest in promoting Myanmar’s economic development and boosting trade and investment opportunities linked to the opening of the Burmese market has therefore been confirmed. An
interest which Minister Terzi had conveyed to the Burmese authorities during his visit to Myanmar in April 2012.
Italy-Myanmar relations draw much closer
A Joint Declaration signed during President Thein Sein’s visit has set the seal on the mutual desire to intensify relations at all levels between the two countries. It also testifies to the common intention to further increase economic relations, while reiterating Italy’s determination to go on supporting the democratic transition process currently under way in Myanmar.
