The World Bank has warned Burma it must pay back its debts if it wishes to win further support from the global financial institution.

The World Bank's regulations state that it cannot provide funding to any country in arrears. In 2008, then managing director Juan Jose Daboub said that the bank could not lend to Burma after devastating Cyclone Nargis as the regime had been in arrears since 1998.

The World Bank did not immediately have a current figure on Burma's debt. The country, once known as the "rice bowl of Asia" for its agricultural riches, is deeply impoverished after years of economic mismanagement.

World Bank vice president for East Asia and the Pacific Pamela Cox said the global financial institution does want to support democratic reforms in Burma.

"We are encouraged by developments in Myanmar and we have begun the process of reengaging with the government to support reforms that will benefit all of the people of Myanmar [Burma], including the poor and vulnerable," she said.

The World Bank said it hopes to work with Burma to improve public services, upgrade financial and banking sectors and create private sector oppurtunities.

Source: World Bank tells Burma to pay debts ABC Radio Australia News | 22 Feb 2012