Yangon, Jan 29 (IANS): Myanmar has settled debt of $430 million owed to the World Bank since 1973 in coordination with the Japan Bank for International Cooperation (JBIC) and has re-obtained a new loan of same amount from the world financial institution, said authorities.

Myanmar settled the World Bank debt by taking out the amount from JBIC Jan 25 and paid back the World Bank, a press release of the Ministry of Finance and Revenue said Tuesday.

Obtaining a new loan of $430 million from the World Bank on the same day, Myanmar finally settled the debt by paying off the bridge loan to JBIC, reported Xinhua.

According to the release, the World Bank will support Myanmar with $80 million in carrying out national community-driven development project for infrastructural development in agricultural sector, roads, health centers and schools of 640 villages across the country.

The release added that the World Bank will resume social and economic assistance to help Myanmar build strong foundation for poverty alleviation scheme and positive reform process.

Similarly, Myanmar had earlier also settled A debt of $512 million owed to the Asian Development Bank (ADB) by a bridge loan obtained from the JBIC, which Myanmar paid off while again getting a new loan of $512 million from the ADB, the largest amount it received in 30 years from ADB.

Through clearing the debt, Myanmar would have access to more low-interest development loan programs.