Myanmar and Germany have signed an agreement to cut the former’s debt owed to Germany by 50 percent, or as much as 542 million EUR (704.6 million USD).

Under the agreement reached at talks between German President Joachim Gauck and his Myanmar counterpart U Thein Sein in Nay Pyi Taw, Myanmar on February 10, the remaining debt of 542 million EUR with a three percent interest rate is to be repaid within a period of 15 years.

The signing came after the Paris Club, including the US, Russia, Japan and EU member nations, agreed to free the Southeast Asian nation from half of its debt.

At the talks, both sides held a wide-ranging discussion on bilateral ties and stronger partnerships in trade, investment and Myanmar’s peace process.

They also considered the stability and development in the Myanmar state of Rakhine and the growth of small and medium-sized enterprises in the country.

As scheduled, Gauck will meet with opposition politician Aung San Suu Kyi and attend the inauguration of the German Office of Economic Affairs and the Institute of Goethe in Yangon.

Myanmar is the second leg of Gauck’s Asian tour and the first State visit by a German President since 1986.

Two-way trade surpassed 187.5 million USD in the 2012-2013 fiscal year. Germany has resumed the supply of its comprehensive development assistance to Myanmar after the European Union lifted sanctions against the country.

(Source: VNA)