KDDI Summit Global will record a 105 billion yen provision in the financial year ended March 31, due to delays in the collection of receivables, Sumitomo said in a statement. The provision accounts for 80% of the loans of KDDI Summit Global Myanmar (KSGM), which is 50.1% owned by KDDI and 49.9% by Sumitomo.

As a result KDDI Summit Global will record a 105 billion yen provision in the financial year ended March 31, due to delays in the collection of receivables, Sumitomo said in a statement.

"(The) Myanmar business continues to face country risk, and there are various possible options for the future, but we intend to continue the business there for now," a Sumitomo spokesperson said.

Sumitomo's share of the Myanmar unit's impaired loans is 52.5 billion yen, but the impact on its earnings will be 35 billion yen, as the trading company will reverse an impairment loss of 17.5 billion yen it had booked in the year that ended March 31, 2023, it said.

The 35 billion yen loss was not included in Sumitomo's net profit forecast made in February of 500 billion yen for the year ended March 31 and it is still reviewing group results, the company said.

KSGM will continue to make efforts to collect dollar-denominated lease receivables, it added.

($1 = 151.8700 yen)

(Reporting by Yuka Obayashi; Editing by Sharon Singleton)