Yangon ( Financial Times ) -- Myanmar passed a milestone in its efforts to clear its foreign debts after announcing agreements with the Paris Club of creditors , the World Bank , and the Asian Development Bank . The deals announced Sunday mean that Myanmar has now cleared the bulk of its $ 11.3bn in outstanding foreign debts . Resolving the debts , which the government stopped servicing in the 1980s , is seen as a crucial step in the country 's efforts to re-engage with international donors . The World Bank and the ADB said their boards had agreed to clear Myanmar 's arrears of a combined $ 960m using bridge loans from the Japan Bank for International Cooperation . The moves funded by Tokyo followed Japan 's unilateral decision to settle nearly $ 6.6bn in bilateral debt and a subsequent move by Norway to clear some $ 600m in debt . The Paris Club agreement , to cancel at least 50 per cent of a further $ 4.4bn in bilateral debt , will meanwhile enable Myanmar to start negotiations with nine creditor countries on repayment terms . Myanmar , which has promised a series of rapid political and economic reforms under President Thein Sein , has made clearing its debts a priority . But there are concerns among some diplomats that the debt deals could prompt further criticism of the Myanmar military 's escalating attacks on northern ethnic Kachin rebels . In recent weeks , the United Nations , the US and the European Union have all urged an end to the fighting , and some western politicians and officials have warned that further conflict could endanger aid plans for Myanmar . The most significant breakthrough in terms of Myanmar 's remaining debt to creditor countries came after an intense 19-hour negotiating session between Myanmar and the Paris Club group of creditor countries in Paris late last week . The Paris Club is an informal group of creditor countries that consult regularly on issues including loan restructuring and debt cancellation , particularly for heavily indebted poor countries . Myanmar owed about $ 4.4bn to nine Paris Club countries including the UK , Germany , France , Denmark and the Netherlands . Under Paris Club rules , a debtor country must first clear its arrears with international financial institutions before it can negotiate with creditor countries . `` It was a very tough negotiation , but Myanmar got a good , in some respects exceptional , agreement -- this has really opened a new era for us , '' said Zaw Oo , a leading Myanmar economist who was part of the negotiating team in Paris . The government has high hopes for more leniency from creditors following the Paris Club talks , he noted . `` Japan and Norway 's moves were vital in helping the Paris Club reach a relatively quick agreement , but the international financial institutions were crucial in convincing creditors that our reforms are genuine and are proceeding , '' he said , noting that such a move would normally have required a formal IMF programme . `` Myanmar has come a long way in its economic transformation '' and the debt deals should help attract investment , spur growth and create jobs , said Annette Dixon , the World Bank 's country director , though she warned `` much work remains to be done '' . In its most recent assessment , the World Bank said Myanmar 's economic growth accelerated to 5.5 per cent in fiscal year 2011-12 and is expected to reach 6.3 per cent in 2012-13 . © The Financial Times Limited 2013 .
Myanmar cancelled bulk of $ 11.3B in outstanding foreign debts . Myanmar reached agreement with Paris Club creditors , World Bank , etc . Paris Club also cancels at least 50 % of further $ 4.4B in bilateral debt .