Myanmar announces major debt relief deal

Myanmar said on Monday that the Paris Club of creditor nations had agreed to cancel half of its debts, another milestone in the rapid transformation of the former junta-ruled nation.

The deal, together with pledges by Japan and Norway, reduces the country's debt burden by nearly $6 billion, according to an official statement published by state media.

It said the agreement, struck with Paris Club creditor countries on January 25, would cancel the debts in two phases, with the remaining amounts to be rescheduled over 15 years.

Japan has committed to cancel arrears worth over $3 billion while Norway is writing off $534 million, according to the statement.

"Other bilateral donors are expected to follow suit and more debt cancellation is coming on the way in the next six months," it said.

The move follows a string of dramatic political reforms in the one-time pariah state, which is seeking development assistance and foreign investment to boost its ailing economy.