Chinese and Myanmar governments have reached an agreement that Myanmar will buy all materials for railway construction in China and will use their technologies, China in its turn will finance the project with 92 million USA dollar loan at 2 percent interest rate.
The railway project involves manufacture locomotives and building of railway carriages. Total budget will consist of Chinese money on 92%. Myanmar will have to make repayment of the credit in 15 years.
Some experts speak negatively about the Chinese loan because of its too high interest.
China will finance Myanmar railway project
News in Asia
Chinese and Myanmar governments have reached an agreement that Myanmar will buy all materials for railway construction in China and will use their technologies, China in its turn will finance the project with 92 million USA dollar loan at 2 percent interest rate.