Germany signed an agreement to waive half of the 1,084 million euros in debt it is owed by Myanmar at a ceremony in Nay Pyi Taw on February 10.
The agreement was signed in the presence of President U Thein Sein and his visiting German counterpart, Mr Joachim Gauck.
It provides for Myanmar to repay the remaining 542 million euros (K731,393,142,295) over 15 years at an interest rate of three percent, said Myanmar state radio.
The waiving of half the debt is in line with an agreement reached by the Paris Club of nations, of which Germany is a member, and Myanmar on February 28, 2013.
The agreement provided for Paris Club creditors other than Japan to write off half of the debt owed them by Myanmar in two phases, and the balance to be repaid over 15 years, with a seven-year grace period.
The signing of the debt relief agreement on February 10 came as Mr Gauck held talks with U Thein Sein and Myanmar government ministers at the President’s Nay Pyi Taw residence.
The promotion of trade ties was among the topics discussed.
Mr Gauck had earlier met the chair of the National League of Democracy, Daw Aung San Suu Kyi, for about an hour at a Nay Pyi Taw hotel.
Speaking later at news conference, Mr Gauck said Germany was closely watching the constitutional reform process.
“Political reform and the review of the constitution are the topics I discussed with the Myanmar government, the opposition and civil society,” he said. Mr Gauck said he had also touched on human rights issues during his talks with Myanmar leaders.
