It appears a new round of foreign loans have helped the COVID-19 Economic Relief Plan, or CERP, reach its massive price tag. A new round of parliament-approved financing from Japan and the International Monetary Fund have put the total value of foreign money borrowed to more than USD 2.5 billion, according to data compiled by the Myanmar Times.

Almost USD 1 billion of that financing has come this week from the Japan International Cooperation Agency (JICA) and the IMF, which have given low interest, long term loans of, respectively, JPY 30 billion (around USD 275 million) and USD 700 million. Other loans come from the Asian Development Bank, which loaned USD 60 million, and the World Bank, which loaned USD 50 million to support Myanmar’s pandemic-stricken economy. According to the Myanmar Times, the new financing puts Myanmar’s total foreign debt at more than USD 10 billion.

Speaking to parliament last week, U Maung Maung Win, deputy minister for the Ministry of Planning, Finance and Investment, argued that the vast amounts of foreign financing are crucial for Myanmar to weather the storm. Although forecasts from organizations such as the IMF and ADP are predicting that Myanmar’s economy will continue to grow, expected growth rates have plunged from 6-7% to 1-2%. “GDP growth rates for this year and next may decline by up to 2 percent, while the budget deficit is forecast to widen by up to MMK 3 trillion,” U Maung Maung Win said.