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See more | Photo caption The Olympians Athletes around the world train for the upcoming London 2012 Olympics. Slideshow Facing eviction Spanish families face eviction after being unable to pay their mortgages. Slideshow Japan near to announcing Myanmar loans restart: source Tweet Share this Email Print Related News U.S. eases Myanmar sanctions to boost NGO projects Tue, Apr 17 2012 British PM, Suu Kyi back suspension of Myanmar sanctions Fri, Apr 13 2012 Special Report: An image makeover for Myanmar Inc Thu, Apr 12 2012 CORRECTED-UPDATE 5-Cameron agrees joint defence deal with Japan Tue, Apr 10 2012 REFILE-UPDATE 3-US moves to ease Myanmar sanctions after reforms Wed, Apr 4 2012 Analysis & Opinion Japan… tide finally turning? Related Topics World » Japan » Myanmar » By Kiyoshi Takenaka TOKYO | Thu Apr 19, 2012 1:41am EDT TOKYO (Reuters) - Japan is likely announce at the weekend that it is ready to resume making development loans to Myanmar, a source with direct knowledge of the matter said, a move that would support Myanmar's nascent democracy and help pay for much-needed infrastructure upgrades. The two countries are in the final stages of talks to work out how Myanmar will repay at least part of its outstanding debt to Japan, a precondition for new loans, and the source said he expects an agreement to be reached in time for a regional summit in Tokyo on Saturday. "We are putting the final touches to the issue of how to solve the (debt) problem, which needs to be overcome for the loan restart," said the source, who spoke on condition of anonymity because the Japanese government's step has not been made public. The exact amount of Myanmar's debt to Japan is not known. Myanmar's government, which has no dedicated spokespeople, made no immediate comment. The move is expected just days after the United States relaxed sanctions on Myanmar, allowing transactions to support some humanitarian and development projects. The European Union is due this month to review its sanctions on Myanmar, whose president Thein Sein has stunned critics with reforms unthinkable a year ago, including the release of hundreds of political prisoners, easing media censorship and holding peace talks with rebels. Nobel Peace Prize laureate and pro-democracy icon Aung San Suu Kyi won a seat in parliamentary by-elections this month that yielded a landslide victory for her party. Before a bloody crackdown on pro-democracy demonstrations in Myanmar in 1988, Japan had promised around 410 billion yen ($5.04 billion) in low-interest, long-term loans to finance port, road, railway and other big projects in the country. The Japanese government has not disclosed how much of that money changed hands, but since then it has mostly limited its aid to small grants for humanitarian purposes. Typically, low-interest loans made by Japan to developing countries for infrastructure projects run into the tens of billions of yen. The limitations of Myanmar's transport system could present logistical problems for investors planning to use the country as a manufacturing base. Railways cover only a handful of routes and many roads are in poor condition, while much of the country is without access to reliable electricity. Japanese Foreign Minister Koichiro Gemba said in February that Tokyo planed to resume development aid to Myanmar to support its move towards democracy, but he did not specify the timing of loan resumption or the size of fresh loans. President Thein Sein is scheduled to travel to Japan on Friday for a five-day visit, including a six-way meeting between Japanese Prime Minister Yoshihiko Noda and top leaders from Cambodia, Vietnam, Thailand, Laos and Myanmar on Saturday. Unlike many Western powers, Japan imposed no sanctions on Myanmar, preferring a policy of dialogue and engagement. ($1 = 81.3100 Japanese yen) (Editing by Daniel Magnowski) World Japan Myanmar Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. 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